The rule of thumb is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Crowborough can extend the lease for an additional 90 years under the 1993 Leasehold Reform Act. Do give careful consideration before delaying your Crowborough lease extension. Putting off that expense now simply increases the premium you will ultimately have to pay to extend the lease.
Leasehold residencies in Crowborough with over 100 years outstanding 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 property. 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 |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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. |
The conveyancing solicitors that we work with handle Crowborough lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Kai was the the leasehold proprietor of a studio apartment in Crowborough being marketed with a lease of just over 59 years left. Kai on an informal basis approached his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £125 annually. No ground rent would be due on a lease extension were Kai to invoke his statutory right. Kai obtained expert advice and secured an acceptable deal without resorting to tribunal and readily saleable.
Dr F Turner completed a one bedroom apartment in Crowborough in July 2001. We are asked if we could estimate the price would be for a ninety year lease extension. Identical residencies in Crowborough with a long lease were in the region of £255,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease expired in 2097. Having 71 years outstanding we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus professional charges.
In 2011 we were approached by Mr and Mrs. W Anderson who, having owned a recently refurbished apartment in Crowborough in August 1995. The dilemma was if we could approximate the premium would likely be to extend the lease by a further 90 years. Comparable premises in Crowborough with an extended lease were valued about £249,200. The mid-range amount of ground rent was £60 collected quarterly. The lease elapsed on 8 November 2077. Taking into account 51 years remaining we estimated the premium to the landlord for the lease extension to be within £42,800 and £49,400 plus expenses.