On the balance of probabilities where you own a flat in Crowborough you actually own a long leasehold interest over your property
Leasehold premises in Crowborough with over 100 years remaining on the lease are sometimes 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 to be gained by buying the reversionary interest 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. |
| National Westminster Bank | Mortgage term plus 30 years. 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Retaining our service gives you increased control over the value of your Crowborough leasehold, as your property will be more valuable and saleable in terms of lease length should you decide 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.
In 2014 Luca, started to get close to the eighty-year threshold with the lease on his two bedroom flat in Crowborough. In buying his flat 19 years ago, the length of the lease was of no concern. Fortunately, it dawned on him that he would imminently be paying way over the odds for Extending the lease. Luca was able to extend his lease just in the nick of time in April. Luca and the freeholder via the managing agents in the end agreed on a premium of £5,000 . If he had missed the deadline, the sum would have gone up by at least £875.
Last Christmas we were contacted by Dr L Rogers , who was assigned a lease of a one bedroom flat in Crowborough in April 2003. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Identical residencies in Crowborough with an extended lease were worth £270,000. The mid-range amount of ground rent was £55 billed every twelve months. The lease elapsed in 2101. Considering the 75 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including fees.
In 2014 we were e-mailed by Mr and Mrs. D Adams who, having moved into a purpose-built apartment in Crowborough in August 2000. The dilemma was if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Comparative premises in Crowborough with 100 year plus lease were valued around £168,800. The mid-range amount of ground rent was £60 collected per annum. The lease terminated on 7 March 2081. Having 55 years left we approximated the compensation to the freeholder to extend the lease to be between £30,400 and £35,200 not including costs.