It’s a harsh certainty that a Crowborough residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Crowborough property prices.Where your lease has approximately 90 years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under 80 years - otherwise a higher amount will be payable. Most flat owners in Crowborough will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process is initiated and you will need to be guided by your lawyer for the duration of the process.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Crowborough,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Crowborough valuers.
Last year Edward, came very close to the 80-year mark with the lease on his ground floor flat in Crowborough. In buying his property 18 years ago, the lease term was of minimal relevance. Fortunately, he realised he needed to take steps soon on a lease extension. Edward arranged for a lease extension just under the wire in January. Edward and the landlord ultimately settled on sum of £5,000 . If the lease had slipped below eighty years, the amount would have gone up by a minimum £850.
Mr and Mrs. H Leroy moved into a ground floor flat in Crowborough in September 2000. The question was if we could estimate the price could be for a ninety year lease extension. Similar flats in Crowborough with an extended lease were in the region of £260,000. The mid-range amount of ground rent was £50 collected annually. The lease ended on 26 June 2098. Taking into account 73 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including fees.
Mr Jude Murphy owned a studio flat in Crowborough in June 2008. The question was if we could approximate the price could be to prolong the lease by 90 years. Comparative flats in Crowborough with 100 year plus lease were in the region of £264,000. The mid-range ground rent payable was £60 billed per annum. The lease ran out on 8 October 2078. Taking into account 53 years left we estimated the compensation to the landlord to extend the lease to be within £37,100 and £42,800 exclusive of costs.