It’s an underpublicised certainty that a Crowborough residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Crowborough property market.Once your lease gets to 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under 80 years - otherwise a higher amount will be payable. Most flat owners in Crowborough will be able to extend under the legislation; however a lawyer will be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
Leasehold residencies in Crowborough with in excess of 100 years outstanding on the lease are often referred to as ‘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 buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Crowborough,the lease extension lawyers 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.
Half a year ago Mason, started to get near to the eighty-year threshold with the lease on his basement apartment in Crowborough. In buying his property twenty years previously, the lease term was of little interest. Luckily, he recognised he would soon be paying an inflated amount for a lease extension. Mason was able to extend his lease at the eleventh hour last January. Mason and the freeholder via the managing agents in the end settled on an amount of £6,000 . If the lease had dropped below eighty years, the premium would have become more costly by at least £950.
In 2013 we were called by Mr Benjamin Clarke who, having owned a studio flat in Crowborough in November 1998. We are asked if we could estimate the premium would likely be for a ninety year lease extension. Similar flats in Crowborough with a long lease were valued about £250,000. The mid-range ground rent payable was £50 billed every twelve months. The lease elapsed in 2094. Considering the 68 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £10,500 and £12,000 plus expenses.
Last Summer we were called by Dr S Martínez , who moved into a one bedroom flat in Crowborough in February 2000. The question was if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Comparable premises in Crowborough with a long lease were valued around £285,000. The mid-range ground rent payable was £55 collected yearly. The lease end date was in 2105. Having 79 years remaining we approximated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 not including costs.