The closer a residential lease in Crook gets to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, more than 125 years to run then this decrease may be of little impact that being said there will become a stage when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary reason why you should extend the lease sooner rather than later. Many flat owners in Crook will meet the qualifying criteria; that being said a lawyer will be able to advise if you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is conventional wisdom that a property with more than one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years left, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you increased 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 are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
After protracted discussions with the landlord of her garden flat in Crook, Danielle initiated the lease extension process just as her lease was coming close to the crucial eighty-year mark. The legal work was concluded in August 2014. The freeholder’s charges were restricted to about 650 GBP.
In 2012 we were approached by Dr M Díaz who, having was assigned a lease of a purpose-built apartment in Crook in November 1997. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Comparable properties in Crook with 100 year plus lease were valued around £184,000. The mid-range amount of ground rent was £55 invoiced quarterly. The lease expiry date was in 2078. Having 53 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 exclusive of professional charges.
Mrs Bethan Pérez acquired a one bedroom flat in Crook in March 1999. We are asked if we could approximate the premium would likely be to prolong the lease by ninety years. Similar residencies in Crook with a long lease were valued around £290,000. The mid-range amount of ground rent was £45 invoiced annually. The lease elapsed on 5 January 2098. Having 73 years outstanding we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of costs.