The market value of a leasehold property in Crook is impacted by how many years the lease has remaining. If it is close to or fewer than 80 years you should envisage problems on re-sale, so it is advisable to arrange for the lease to be extended prior to buying. It is preferable to commence the process of extending the lease is when the lease still has 82 years unexpired so that formalities can be concluded in advance of the 80 year cut off point. Current legislation enables Crook qualifying lessees to a ninety year extension added to their remaining lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Crook with over one hundred years remaining on the lease are often referred to as ‘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 to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Crook can be a difficult process. We recommend you procure 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 procuring Crook lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing lengthy correspondence with the landlord of her first floor flat in Crook, Paige commenced the lease extension process as the 80 year mark was quickly nearing. The legal work was finalised in September 2015. The freeholder’s costs were restricted to slightly above 500 GBP.
In 2010 we were called by Mr and Mrs. P Morel who, having owned a studio apartment in Crook in October 2006. The dilemma was if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Similar homes in Crook with an extended lease were in the region of £300,000. The average ground rent payable was £50 invoiced per annum. The lease ended in 2101. Taking into account 76 years remaining we estimated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 plus expenses.
Last Spring we were phoned by Mr and Mrs. L Hill , who bought a one bedroom apartment in Crook in July 2006. The question was if we could approximate the price would likely be for a ninety year lease extension. Comparable premises in Crook with a long lease were worth £257,800. The mid-range ground rent payable was £65 billed yearly. The lease came to a finish in 2090. Having 65 years outstanding we calculated the compensation to the landlord for the lease extension to be within £18,100 and £20,800 exclusive of expenses.