There is no doubt about it a leasehold flat or house in Crook is a wasting asset as a result of the shortening lease. If the lease has, over 125 years to run then this decrease may be negligible nevertheless there will become a stage when a lease has less than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should extend the lease without delay. The majority of flat owners in Crook will meet the qualifying criteria; that being said a lawyer can advise whether you are eligible for a lease extension. In certain 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 residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the premises 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
The conveyancers that we work with handle Crook 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 lawyer we work with provide it.
Isaac owned a 2 bedroom flat in Crook on the market with a lease of a few days over sixty years outstanding. Isaac informally approached his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 yearly. Ordinarily, ground rent would not be due on a lease extension were Isaac to invoke his statutory right. Isaac procured expert advice and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
Last Spring we were contacted by Mrs M Mitchell , who was assigned a lease of a one bedroom apartment in Crook in February 2003. We are asked if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Similar homes in Crook with an extended lease were valued around £191,400. The mid-range ground rent payable was £55 invoiced per annum. The lease concluded in 2080. Taking into account 54 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £34,200 and £39,600 plus expenses.
In 2013 we were called by Mr and Mrs. G André who, having owned a basement apartment in Crook in November 2005. The dilemma was if we could estimate the price would likely be to extend the lease by an additional years. Similar residencies in Crook with 100 year plus lease were in the region of £295,000. The average ground rent payable was £45 invoiced monthly. The lease terminated in 2100. Considering the 74 years left we calculated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 not including legals.