The closer a residential lease in Crowborough gets to zero years unexpired, the the greater the reduction in the value of the property. If the lease has, in excess of one hundred years to run then this decrease may be of little impact however there will become a stage when a lease has less than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should extend the lease sooner as opposed to later. The majority of flat owners in Crowborough will qualify for this right; nevertheless a conveyancing solicitor can confirm whether you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Crowborough with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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: • 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 • The value of the property subject to the short remaining term is £500,000 or more AND • 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; |
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Lease extensions in Crowborough can be a difficult process. We recommend you secure professional help from a lawyer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Crowborough lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Lewis, came perilously near to the eighty-year mark with the lease on his two bedroom apartment in Crowborough. Having purchased his flat two decades ago, the length of the lease was of minimal concern. Fortunately, he realised he would soon be paying way over the odds for a lease extension. Lewis arranged for a lease extension just under the wire in August. Lewis and the landlord who owned the flat above ultimately settled on a premium of £5,500 . If he failed to meet the deadline, the figure would have increased by at least £1,075.
In 2013 we were called by Dr Callum Garcia who, having took over the lease of a purpose-built apartment in Crowborough in February 1995. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar premises in Crowborough with 100 year plus lease were worth £250,000. The mid-range ground rent payable was £50 billed every twelve months. The lease end date was in 2093. Given that there were 69 years remaining we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus legals.
Last September we were phoned by Ms Phoebe Edwards , who purchased a ground floor flat in Crowborough in June 2005. The question was if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Identical premises in Crowborough with an extended lease were valued around £285,000. The mid-range ground rent payable was £55 billed per annum. The lease expired in 2104. Given that there were 80 years remaining we approximated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including costs.