The rule of thumb is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Crook can extend the lease for a further 90 years in accordance with the 1993 Leasehold Reform Act. Please give careful consideration before delaying your Crook lease extension. Putting off the costs today simply increases the amount you will ultimately be required to pay to extend the lease.
Leasehold residencies in Crook with more than 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
Engaging our service will provide you better control over the value of your Crook leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last Summer Mason, started to get near to the eighty-year threshold with the lease on his two bedroom apartment in Crook. In buying his home two decades ago, the unexpired term was of little relevance. Luckily, he realised he would soon be paying way over the odds for a lease extension. Mason arranged for a lease extension just under the wire last August. Mason and the landlord who owned the flat above eventually settled on an amount of £5,000 . If the lease had slipped lower than 80 years, the figure would have become more exhorbitant by at least £1,050.
In 2009 we were called by Mr I Stewart who, having moved into a first floor apartment in Crook in January 1999. We are asked if we could approximate the premium could be for a ninety year lease extension. Similar properties in Crook with a long lease were worth £233,200. The average amount of ground rent was £60 invoiced monthly. The lease terminated on 17 August 2087. Given that there were 61 years unexpired we estimated the premium to the landlord for the lease extension to be within £22,800 and £26,400 exclusive of professional charges.
In 2011 we were contacted by Mr R Lewis who, having moved into a first floor flat in Crook in May 2009. We are asked if we could approximate the premium would likely be to prolong the lease by a further 90 years. Comparable premises in Crook with an extended lease were worth £166,800. The average amount of ground rent was £50 invoiced per annum. The lease ended on 10 March 2076. Taking into account 50 years unexpired we approximated the premium to the freeholder for the lease extension to be between £32,300 and £37,400 plus professional charges.