Crowborough leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Crowborough tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Crowborough you should check if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
Leasehold premises in Crowborough with more than 100 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 home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| 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 |
| 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. |
The lawyers that we work with procure 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 conveyancer we work with provide it.
In 2014 Oscar, started to get near to the 80-year mark with the lease on his first floor apartment in Crowborough. In buying his home two decades ago, the length of the lease was of minimal interest. Luckily, he noticed he needed to take steps soon on a lease extension. Oscar arranged for a lease extension at the eleventh hour in June. Oscar and the landlord who owned the flat above eventually agreed on sum of £6,000 . If the lease had dipped to less than 80 years, the sum would have gone up by at least £1,075.
Last month we were called by Mr and Mrs. G Garcia , who owned a one bedroom apartment in Crowborough in May 2004. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by ninety years. Comparable flats in Crowborough with a long lease were worth £237,600. The mid-range amount of ground rent was £45 billed every twelve months. The lease concluded on 22 September 2093. Considering the 67 years left we estimated the premium to the freeholder for the lease extension to be within £11,400 and £13,200 plus fees.
In 2013 we were called by Mr C Smith who, having purchased a studio flat in Crowborough in June 2007. We are asked if we could estimate the premium would likely be for a 90 year extension to my lease. Comparative residencies in Crowborough with 100 year plus lease were worth £280,000. The mid-range amount of ground rent was £55 billed quarterly. The lease concluded on 13 October 2104. Considering the 78 years remaining we estimated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of legals.