The market value of a leasehold property in Crook depends on how many years the lease has left to run. If it is near to or less than 80 years you should anticipate difficulties on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. Ideally one should start the process of extending the lease is when the lease still has 82 years to run so that all matters can be concluded prior to the eighty year threshold. Current legislation enables Crook qualifying lessees to acquire a lease extension of ninety years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The intention of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Crook with in excess of 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold 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 are not acceptable. 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; |
| Chelsea Building Society | 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you increased control over the value of your Crook leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Finn owned a 2 bedroom flat in Crook being sold with a lease of a few days over sixty years unexpired. Finn informally approached his freeholder a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £100 yearly. Ordinarily, ground rent would not be payable on a lease extension were Finn to exercise his statutory right. Finn obtained expert legal guidance and secured satisfactory deal informally and sell the flat.
Ms Jasmine Mitchell purchased a studio apartment in Crook in January 2008. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Comparative residencies in Crook with a long lease were worth £181,600. The mid-range ground rent payable was £55 invoiced yearly. The lease concluded in 2078. Taking into account 52 years unexpired we approximated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 exclusive of costs.
Last year we were phoned by Mrs P Rose , who acquired a first floor flat in Crook in October 1995. The dilemma was if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Identical properties in Crook with an extended lease were valued about £285,000. The average amount of ground rent was £45 billed quarterly. The lease elapsed in 2098. Considering the 72 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus legals.