The basic rule is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Upper Clapton can extend the lease for a further 90 years under statute. Do give careful consideration before delaying your Upper Clapton lease extension. Shelving that expense now simply escalates the amount you will ultimately have to pay to extend the lease.
Leasehold residencies in Upper Clapton with in excess of 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
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Lease extensions in Upper Clapton can be a difficult process. We recommend you secure professional help from a conveyancer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Upper Clapton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Jackson, started to get close to the 80-year threshold with the lease on his two bedroom flat in Upper Clapton. In buying his flat two decades ago, the unexpired term was of little importance. As luck would have it, he became aware that he would soon be paying an inflated amount for a lease extension. Jackson was able to extend his lease just under the wire in March. Jackson and the freeholder via the management company subsequently agreed on an amount of £5,500 . If he not met the deadline, the price would have increased by a minimum £1,075.
In 2011 we were approached by Mrs Kayleigh Johnson who, having acquired a first floor apartment in Upper Clapton in January 2009. The dilemma was if we could approximate the compensation to the landlord could be for a ninety year lease extension. Comparable premises in Upper Clapton with a long lease were worth £166,800. The average amount of ground rent was £50 billed quarterly. The lease concluded on 22 June 2076. Considering the 50 years outstanding we calculated the premium to the landlord to extend the lease to be within £32,300 and £37,400 not including expenses.
An example of a Lease Extension decision for a Upper Clapton residence is Flat 25, Stamford Hill Mansions Stamford Hill in April 2010. The Tribunal therefore determined that the premium to be paid by the lessee to the freeholder for the extension of the lease should be £28,984.00 This case affected 1 flat. The unexpired residue of the current lease was 59 years.