Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will normally be granted for a prescribed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Crawcrook. Clearly, the period of lease remaining reduces over time. This may slip by relatively unnoticed when the flat or house needs to be sold or re-mortgaged. The shorter the lease the less it is worth and the more it will cost to extend the lease. Eligible leaseholders in Crawcrook have the right to extend the lease for a further ninety years in accordance with legislation. You should give due attention before putting off your Crawcrook lease extension. Putting off that expense now only increases the price you will eventually have to pay for a lease extension
Leasehold properties in Crawcrook with over 100 years outstanding on the lease are often referred to as ‘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 upside in buying the freehold unless savings on ground rent and service charges warrant 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
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.
In the wake of 6 months of unsuccessful discussions with the freeholder of her ground floor flat in Crawcrook, Chantelle commenced the lease extension process as the 80 year mark was rapidly nearing. The legal work completed in November 2007. The landlord’s fees were kept to an absolute minimum.
Last Winter we were approach by Mr and Mrs. B Carter , who took over the lease of a one bedroom flat in Crawcrook in May 2012. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by an additional years. Comparative residencies in Crawcrook with 100 year plus lease were worth £191,400. The mid-range ground rent payable was £55 billed yearly. The lease elapsed on 14 November 2079. Given that there were 54 years remaining we calculated the premium to the landlord for the lease extension to be within £34,200 and £39,600 not including legals.
Last Summer we were phoned by Mr and Mrs. V Adams , who acquired a first floor flat in Crawcrook in July 2009. The dilemma was if we could approximate the premium would be to prolong the lease by ninety years. Similar residencies in Crawcrook with an extended lease were in the region of £295,000. The average amount of ground rent was £45 billed per annum. The lease came to a finish in 2099. Having 74 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including professional charges.