Why you should start your Crook lease extension
<div class="lm-topic lm-topic-lender">
<p>
<h3>
Why you should commence your Crook lease extension today: </h3>
<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/crook">Crook</a> lease depreciates with the years remaining on the lease.
</h4>
<p> The nearer a residential lease in Crook nears to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, more than one hundred years to run then this decrease may be of little impact however there will become a stage when a lease has under than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main logic behind why you should consider extending sooner as opposed to later. The majority of flat owners in Crook will qualify for this right; that being said a conveyancer can confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
<h4>Crook property with a lease extension is almost the same value as a freehold</h4>
<p>
Leasehold properties in Crook with more than one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it. <h4>Lenders will not loan monies with a short lease</h4> Mortgage companies are making their criteria more stringent and a meaningful number now want flats to have at least sixty if not seventy years remaining once the mortgage has expired. As many flats in Crook were created in the fifties, sixties and seventies this means many now need to be extended if they wish to get a mortgage.
<p>
<div class="row">
<div class="col-sm-8">
<table class="table table-striped table-condensed">
<thead>
<tr><th>Lender</th>
<th> Requirement
</thead>
<tbody>
<tr>
<td>Accord Mortgages</td>
<td> 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.
</tr>
<tr>
<td>Barclays plc</td>
<td> Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below).<br /><br />Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office.<br /><br />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:<br /><br />• 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<br />• The value of the property subject to the short remaining term is £500,000 or more AND<br />• 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;
</tr>
<tr>
<td>Barnsley Building Society</td>
<td> 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.
</tr>
<tr>
<td>Godiva Mortgages</td>
<td> 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.
</tr>
<tr>
<td>National Westminster Bank</td>
<td> Mortgage term plus 30 years.<br /><br />For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage.
</tr>
</tbody>
</table>
</div>
</div>
<h4>
What makes us experts in Crook lease extensions?
</h4>
<p> Using our service will provide you enhanced 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 conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions. <h4>
Crook Lease Extension Example Cases:
</h4>
<h5> William, Crook, County Durham</h5>
<p> During the course of the last few months William, came perilously close to the eighty-year threshold with the lease on his garden flat in Crook. In buying his flat two decades ago, the lease term was of little relevance. As luck would have it, he recognised he needed to take steps soon on Extending the lease. William extended the lease just under the wire in March. William and the freeholder via the managing agents ultimately settled on a premium of £6,000 . If the lease had dropped to less than 80 years, the premium would have increased by a minimum £950.
<h5>Crook case:</h5>
<p> Mr and Mrs. R Howard purchased a first floor flat in Crook in January 2005. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by an additional years. Identical flats in Crook with an extended lease were worth £257,800. The mid-range amount of ground rent was £65 collected every twelve months. The lease ran out on 17 April 2091. Considering the 65 years unexpired we approximated the compensation to the landlord for the lease extension to be between £17,100 and £19,800 plus expenses.
<h5>Crook case:</h5>
<p> Mr and Mrs. N Allen acquired a one bedroom apartment in Crook in January 1997. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Comparative properties in Crook with a long lease were in the region of £191,400. The average amount of ground rent was £55 invoiced yearly. The lease came to a finish in 2080. Given that there were 54 years left we approximated the premium to the landlord to extend the lease to be between £34,200 and £39,600 exclusive of legals.
</div>