For anyone whose Crowborough property is held on a long lease, the message is clear – if you ignore the situation, your property will eventually revert to the freeholder, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more it will cost to obtain a lease extension.
Leasehold properties in Crowborough with more than one hundred years unexpired 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 upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Crowborough can be a difficult process. We recommend you obtain guidance from a lawyer and surveyor with experience in this area.
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.
Last year Daniel, came perilously near to the 80-year threshold with the lease on his basement flat in Crowborough. Having bought his property two decades ago, the length of the lease was of minimal relevance. Fortunately, it dawned on him that he needed to take steps soon on a lease extension. Daniel arranged for a lease extension at the eleventh hour last April. Daniel and the freeholder subsequently settled on sum of £5,500 . If he not met the deadline, the price would have increased by at least £950.
In 2009 we were called by Dr Morgan Lewis who, having took over the lease of a garden flat in Crowborough in August 1998. We are asked if we could shed any light on how much (approximately) premium would likely be for a ninety year lease extension. Comparable premises in Crowborough with an extended lease were in the region of £168,800. The average amount of ground rent was £60 invoiced per annum. The lease lapsed in 2081. Having 55 years outstanding we estimated the premium to the landlord to extend the lease to be within £31,400 and £36,200 not including expenses.
In 2012 we were approached by Dr V Richardson who, having acquired a ground floor apartment in Crowborough in May 2009. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparative properties in Crowborough with a long lease were worth £232,800. The average ground rent payable was £45 billed every twelve months. The lease ended in 2091. Having 65 years unexpired we estimated the premium to the landlord to extend the lease to be between £13,300 and £15,400 not including professional charges.