The value of Crowthorne leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase substantially once the remaining term is less than eighty years
It is generally considered that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Crowthorne,the lease extension lawyers 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.
Subsequent to protracted negotiations with the landlord of her ground floor apartment in Crowthorne, Molly commenced the lease extension process just as the lease was coming close to the all-important eighty-year deadline. The lease extension was concluded in June 2013. The freeholder’s costs were kept to an absolute minimum.
Mr and Mrs. R Ramírez purchased a basement apartment in Crowthorne in June 2010. We are asked if we could shed any light on how much (roughly) price would be for a ninety year extension to my lease. Similar flats in Crowthorne with 100 year plus lease were in the region of £200,800. The mid-range ground rent payable was £65 collected annually. The lease ran out on 17 June 2085. Given that there were 60 years outstanding we calculated the premium to the landlord for the lease extension to be between £20,900 and £24,200 not including expenses.
In 2013 we were called by Mr and Mrs. P Rivera who, having purchased a one bedroom apartment in Crowthorne in October 2007. The question was if we could approximate the premium could be for a ninety year extension to my lease. Comparative homes in Crowthorne with a long lease were in the region of £260,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease expired on 26 August 2096. Considering the 71 years remaining we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.