Unfortunately that a Crowthorne residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Crowthorne property market.Once your lease nears 85ish years, you need to start considering a lease extension. If lease term dips below 80 years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most flat owners in Crowthorne will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer throughout the process.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Coventry Building Society | |
| Godiva Mortgages | |
| National Westminster Bank | |
| Santander | |
| Virgin |
Irrespective of whether you are a tenant or a landlord in Crowthorne,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Crowthorne valuers.
Toby was the the leasehold owner of a conversion flat in Crowthorne on the market with a lease of a few days over 72 years left. Toby on an informal basis approached his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Toby to invoke his statutory right. Toby obtained expert advice and secured an acceptable deal informally and ending up with a market value flat.
Last Spring we were e-mailed by Mr and Mrs. R Simon , who bought a recently refurbished apartment in Crowthorne in May 1998. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by a further 90 years. Comparative homes in Crowthorne with 100 year plus lease were in the region of £245,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease expired in 2094. Given that there were 68 years outstanding we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus costs.
In 2013 we were approached by Mr and Mrs. C Wilson who, having moved into a one bedroom apartment in Crowthorne in September 1997. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Comparative residencies in Crowthorne with 100 year plus lease were valued around £285,000. The mid-range ground rent payable was £55 billed annually. The lease finished in 2105. Considering the 79 years unexpired we estimated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 not including fees.