Crowborough leases on residential properties are gradually losing value. if your lease has about 90 years remaining, you should start thinking about a lease extension. If lease term dips under 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Crowborough will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancer to confirm if you qualify. In some circumstances you may not qualify. There are prescribed deadlines and steps to comply with once the process is triggered so it’s wise to be guided by a lawyer during the process.
Leasehold premises in Crowborough with over 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value 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 service 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. |
| Coventry Building Society | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
Using our service gives you better control over the value of your Crowborough leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Jack owned a high value apartment in Crowborough on the market with a lease of fraction over 72 years remaining. Jack on an informal basis contacted his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Jack to invoke his statutory right. Jack obtained expert advice and secured an acceptable deal informally and sell the property.
Last Spring we were approach by Mr and Mrs. A Hill , who owned a basement apartment in Crowborough in August 2005. The question was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by an additional years. Comparative flats in Crowborough with 100 year plus lease were valued about £176,200. The mid-range amount of ground rent was £65 collected every twelve months. The lease expired on 5 November 2082. Considering the 56 years unexpired we estimated the premium to the freeholder for the lease extension to be within £29,500 and £34,000 not including legals.
In 2010 we were approached by Mr V Bailey who, having bought a one bedroom apartment in Crowborough in August 1998. We are asked if we could approximate the price would likely be to prolong the lease by a further 90 years. Identical homes in Crowborough with 100 year plus lease were worth £237,600. The mid-range amount of ground rent was £45 collected quarterly. The lease finished on 5 January 2093. Given that there were 67 years left we estimated the compensation to the freeholder to extend the lease to be within £11,400 and £13,200 plus costs.