Crowthorne leases on domestic properties are gradually losing value. Where your lease has approximately 90 years unexpired, you should start considering the need for a lease extension. If lease term dips under 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the standard 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. Flat owners in Crowthorne will mostly be legally entitled to a lease extension; however a solicitor should be able confirm your eligibility. In certain circumstances you may not qualify. There are also strict timetables and steps to follow once the process is triggered so it’s wise to be guided by a conveyancer during the process.
Leasehold residencies in Crowthorne with in excess of 100 years outstanding on the lease are often 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 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. |
| 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. |
| Halifax | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Crowthorne can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Crowthorne lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Blake, came perilously close to the eighty-year mark with the lease on his first floor flat in Crowthorne. Having purchased his home 18 years previously, the length of the lease was of little importance. by good luck, he realised he would imminently be paying way over the odds for a lease extension. Blake arranged for a lease extension just under the wire last May. Blake and the freeholder via the managing agents subsequently settled on the final figure of £5,000 . If he failed to meet the deadline, the amount would have become more exhorbitant by at least £1,075.
Mrs G François purchased a basement flat in Crowthorne in April 2009. We are asked if we could estimate the price could be for a 90 year extension to my lease. Identical homes in Crowthorne with 100 year plus lease were worth £265,000. The average amount of ground rent was £50 collected every twelve months. The lease elapsed in 2099. Considering the 73 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of fees.
Last Christmas we were phoned by Mr and Mrs. E Mercier , who acquired a garden apartment in Crowthorne in May 2008. The question was if we could estimate the premium could be for a 90 year extension to my lease. Comparative properties in Crowthorne with 100 year plus lease were in the region of £264,000. The average ground rent payable was £60 invoiced every twelve months. The lease came to a finish in 2079. Taking into account 53 years left we approximated the premium to the freeholder for the lease extension to be within £37,100 and £42,800 plus legals.