Upper Clapton leases on residential properties are gradually losing value. Where your lease has in the region of 90 years unexpired, you should start thinking about a lease extension. If lease term dips under eighty years, you will then have to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Upper Clapton will mostly be legally entitled to a lease extension; however a solicitor will check your eligibility. In some circumstances you may not qualify. There are prescribed deadlines and steps to comply with once the process is initiated so it’s wise to be guided by a conveyancer during the process.
It is generally considered that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with procure Upper Clapton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
In the wake of 9 months of lengthy discussions with the landlord of her two bedroom apartment in Upper Clapton, Jade started the lease extension process just as her lease was nearing the critical 80-year threshold. The legal work was finalised in August 2015. The landlord’s fees were kept to an absolute minimum.
Mr and Mrs. R Brooks acquired a one bedroom flat in Upper Clapton in June 2004. We are asked if we could approximate the premium could be to prolong the lease by an additional years. Comparable residencies in Upper Clapton with an extended lease were valued about £201,200. The average amount of ground rent was £55 collected yearly. The lease finished on 6 October 2082. Having 56 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 exclusive of fees.
An example of a Lease Extension case 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 remaining number of years on the lease was 59 years.