Chances are that if you own a flat in Crawcrook you actually own a long leasehold interest over your property
Leasehold properties in Crawcrook with more than one hundred years unexpired on the lease are sometimes 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 estate charges merit it.
| Lender | Requirement |
|---|---|
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a freeholder in Crawcrook,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 Crawcrook valuers.
Last October Ethan, started to get close to the 80-year mark with the lease on his two bedroom apartment in Crawcrook. In buying his flat two decades ago, the lease term was of little bearing. As luck would have it, he became aware that he would soon be paying an inflated amount for Extending the lease. Ethan extended the lease just under the wire last March. Ethan and the freeholder ultimately agreed on an amount of £6,000 . If the lease had gone lower than 80 years, the price would have increased by a minimum £1,150.
Last Summer we were e-mailed by Dr H Wood , who moved into a one bedroom flat in Crawcrook in May 2002. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year lease extension. Comparable flats in Crawcrook with a long lease were in the region of £260,200. The average amount of ground rent was £65 billed per annum. The lease concluded in 2091. Having 66 years outstanding we estimated the premium to the freeholder to extend the lease to be within £16,200 and £18,600 exclusive of professional charges.
Dr James Girard was assigned a lease of a one bedroom flat in Crawcrook in March 2007. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Similar premises in Crawcrook with an extended lease were worth £198,800. The mid-range ground rent payable was £55 billed yearly. The lease expired in 2080. Given that there were 55 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £33,300 and £38,400 plus costs.