On the balance of probabilities if you own a flat in Crook you actually own a long leasehold interest over your property
Leasehold premises in Crook with in excess of 100 years unexpired 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 upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Crook valuers.
Hugo was the the leasehold owner of a conversion apartment in Crook being sold with a lease of a little over sixty years remaining. Hugo informally spoke with his freeholder being a well known Bristol-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 a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Hugo to invoke his statutory right. Hugo obtained expert legal guidance and secured an acceptable deal without resorting to tribunal and readily saleable.
Last Autumn we were approach by Mr and Mrs. R Lefebvre , who acquired a basement apartment in Crook in March 2005. We are asked if we could estimate the price could be to extend the lease by a further 90 years. Identical properties in Crook with 100 year plus lease were valued about £210,000. The mid-range ground rent payable was £50 billed quarterly. The lease came to a finish in 2105. Given that there were 80 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 plus fees.
In 2009 we were e-mailed by Ms E Lefebvre who, having completed a purpose-built apartment in Crook in July 2011. The question was if we could shed any light on how much (roughly) price could be for a 90 year extension to my lease. Comparable premises in Crook with an extended lease were in the region of £275,000. The average amount of ground rent was £45 billed yearly. The lease terminated in 2094. Taking into account 69 years as a residual term we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 not including fees.