As the the remaining lease term of a Crowborough domestic lease lessens so does its value and therefore the value of your property. If the lease has, in excess of 99 years remaining then this decrease may be of little impact that being said there will become a point in time when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should consider extending sooner as opposed to later. Many flat owners in Crowborough will meet the qualifying criteria; nevertheless a lawyer will be able to confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Crowborough with more than one hundred years unexpired 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 buying 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. |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you increased control over the value of your Crowborough leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last October Ben, came precariously close to the 80-year mark with the lease on his first floor flat in Crowborough. In buying his home 19 years ago, the lease term was of no concern. As luck would have it, it dawned on him that he would imminently be paying an inflated amount for a lease extension. Ben arranged for a lease extension at the eleventh hour last March. Ben and the freeholder in the end settled on a premium of £6,000 . If the lease had dipped to less than eighty years, the price would have escalated by at least £1,025.
Last year we were approach by Dr G Walker , who acquired a basement apartment in Crowborough in April 2001. The dilemma was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparable flats in Crowborough with an extended lease were in the region of £270,000. The average ground rent payable was £55 invoiced monthly. The lease end date was on 16 June 2101. Considering the 76 years unexpired we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of expenses.
Mr and Mrs. J Phillips moved into a one bedroom flat in Crowborough in November 2007. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by an additional years. Similar residencies in Crowborough with an extended lease were worth £176,200. The mid-range amount of ground rent was £65 billed yearly. The lease ran out on 5 April 2081. Given that there were 56 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £29,500 and £34,000 plus professional charges.