Crawcrook leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Crawcrook tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Crawcrook you should investigate if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
Leasehold residencies in Crawcrook with in excess of one hundred years left 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 to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you increased control over the value of your Crawcrook leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Eliot, came perilously close to the 80-year threshold with the lease on his one bedroom flat in Crawcrook. Having bought his home two decades ago, the length of the lease was of minimal importance. Luckily, he became aware that he would imminently be paying an inflated amount for a lease extension. Eliot extended the lease just ahead of time last May. Eliot and the freeholder via the managing agents ultimately agreed on sum of £5,500 . If he failed to meet the deadline, the premium would have gone up by a minimum £1,050.
Last Winter we were contacted by Ms K Roberts , who took over the lease of a ground floor apartment in Crawcrook in May 1998. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by a further 90 years. Comparable residencies in Crawcrook with a long lease were worth £290,000. The average amount of ground rent was £45 collected every twelve months. The lease terminated in 2098. Considering the 73 years unexpired we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.
Dr D Phillips took over the lease of a studio flat in Crawcrook in May 2011. We are asked if we could estimate the price would likely be for a ninety year lease extension. Comparative properties in Crawcrook with 100 year plus lease were valued around £235,600. The mid-range amount of ground rent was £60 collected per annum. The lease lapsed in 2087. Considering the 62 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £21,900 and £25,200 exclusive of legals.