The value of Crowborough leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase significantly once the remaining term is less than eighty years
It is generally considered that a property with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Retaining our service gives you better control over the value of your Crowborough leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
After lengthy discussions with the freeholder of her garden apartment in Crowborough, Rachael initiated the lease extension process as the 80 year threshold was quickly advancing. The lease extension was concluded in January 2006. The landlord’s charges were kept to an absolute minimum.
In 2011 we were called by Dr Jodie Hernández who, having owned a one bedroom apartment in Crowborough in August 2012. We are asked if we could estimate the premium would be for a ninety year lease extension. Similar residencies in Crowborough with an extended lease were in the region of £275,000. The average ground rent payable was £55 collected monthly. The lease termination date was in 2102. Considering the 76 years left we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus costs.
Last Summer we were contacted by Mr and Mrs. S Torres , who took over the lease of a basement flat in Crowborough in July 2010. The dilemma was if we could estimate the premium could be for a ninety year lease extension. Comparative residencies in Crowborough with an extended lease were in the region of £176,200. The mid-range amount of ground rent was £65 collected every twelve months. The lease expired on 17 January 2082. Having 56 years remaining we calculated the compensation to the landlord to extend the lease to be between £29,500 and £34,000 plus legals.