It’s an underpublicised certainty that a Crook residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Crook property prices.Once your lease gets to 85ish years, you should start considering a lease extension. If the number of years remaining falls below eighty years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most flat owners in Crook will be able to extend under the legislation; however a lawyer should be able to confirm whether you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the process.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to 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; |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Crook,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Crook valuers.
Off the back of lengthy negotiations with the landlord of her one bedroom flat in Crook, Charlotte commenced the lease extension process as the 80 year deadline was swiftly approaching. The legal work was concluded in November 2012. The landlord’s costs were kept to an absolute minimum.
In 2010 we were contacted by Mr and Mrs. Y Ramírez who, having acquired a one bedroom apartment in Crook in April 1996. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Comparable properties in Crook with an extended lease were in the region of £208,600. The mid-range ground rent payable was £60 collected quarterly. The lease elapsed in 2082. Having 57 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £30,400 and £35,200 exclusive of fees.
In 2014 we were e-mailed by Mr N Rivera who, having moved into a one bedroom flat in Crook in July 2004. We are asked if we could estimate the premium would likely be to prolong the lease by a further 90 years. Comparative properties in Crook with 100 year plus lease were valued about £200,000. The average amount of ground rent was £50 billed every twelve months. The lease terminated on 4 March 2102. Taking into account 77 years unexpired we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of fees.