Crowborough leases on residential properties are gradually losing value. if your lease has in the region of ninety years remaining, you should start thinking about a lease extension. If lease term dips under eighty years, you will then have to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Crowborough will mostly be legally entitled to a lease extension; however a solicitor should be able check if you qualify. In certain cases you may not qualify. There are also strict timetables and steps to follow once the process has started so it’s sensible to be guided by a conveyancer during the process.
Leasehold premises in Crowborough with more than 100 years left 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 estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Birmingham Midshires | |
| Coventry Building Society | |
| Yorkshire Building Society |
Regardless of whether you are a tenant or a landlord in Crowborough,the lease extension experts that we work with will always be prepared 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.
In recent months Archie, came critically near to the eighty-year threshold with the lease on his purpose- built flat in Crowborough. Having bought his flat 18 years previously, the lease term was of minimal importance. Thankfully, he noticed he needed to take action soon on Extending the lease. Archie was able to extend his lease at the eleventh hour in July. Archie and the freeholder via the managing agents ultimately agreed on an amount of £6,000 . If the lease had slid lower than eighty years, the figure would have become more exhorbitant by a minimum £1,000.
Last Spring we were contacted by Ms Niamh Garcia , who acquired a basement flat in Crowborough in October 2005. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by ninety years. Similar residencies in Crowborough with a long lease were valued about £208,200. The average ground rent payable was £65 invoiced quarterly. The lease ran out in 2087. Given that there were 61 years remaining we approximated the compensation to the freeholder for the lease extension to be between £19,000 and £22,000 not including legals.
Last April we were e-mailed by Dr S Moore , who moved into a newly refurbished apartment in Crowborough in October 1996. The question was if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Identical flats in Crowborough with a long lease were valued around £260,000. The average ground rent payable was £50 billed annually. The lease terminated on 20 February 2098. Taking into account 72 years outstanding we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including professional charges.