With a domestic leasehold property in Crook, you are in fact renting it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are fewer than eighty years left. Anyone in Crook with a lease nearing 81 years left should seriously consider extending it without delay. Once the lease term has less than 80 years remaining, under the relevant Act the landlord is entitled to calculate and charge a greater premium, based on a technical multiplication, strangely termed as “marriage value” which is due.
It is generally considered that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Using our service will provide you enhanced control over the value of your Crook leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Jude was the the leasehold owner of a high value flat in Crook on the market with a lease of a few days over sixty years unexpired. Jude informally approached his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Jude to exercise his statutory right. Jude obtained expert advice and secured satisfactory deal informally and sell the property.
In 2014 we were phoned by Mrs Amber Phillips who, having took over the lease of a studio apartment in Crook in March 1997. We are asked if we could shed any light on how much (roughly) price could be to prolong the lease by an additional years. Identical premises in Crook with a long lease were in the region of £275,000. The mid-range ground rent payable was £45 billed monthly. The lease ran out on 4 August 2095. Considering the 69 years unexpired we calculated the premium to the landlord for the lease extension to be between £12,400 and £14,200 plus legals.
Last Christmas we were phoned by Mrs B Walker , who completed a ground floor flat in Crook in June 2002. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Comparative properties in Crook with a long lease were worth £216,000. The mid-range amount of ground rent was £60 collected quarterly. The lease expired in 2084. Considering the 58 years unexpired we approximated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 not including legals.