As the the remaining lease term of a Crawcrook domestic lease diminished so does its value and therefore the value of your property. If the lease has, in excess of 100 years remaining then this decrease may be negligible nevertheless there will become a stage when a lease has fewer than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary logic behind why you should extend the lease sooner as opposed to later. Most flat owners in Crawcrook will qualify for this right; however a lawyer can confirm whether you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the residence 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 are not acceptable. 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; |
| 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. |
| 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. |
Engaging our service will provide you better control over the value of your Crawcrook leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Finley, started to get close to the eighty-year mark with the lease on his one bedroom apartment in Crawcrook. In buying his property 18 years previously, the length of the lease was of minimal relevance. by good luck, he noticed he would imminently be paying an escalated premium for a lease extension. Finley arranged for a lease extension just in the nick of time in January. Finley and the freeholder subsequently settled on the final figure of £5,500 . If he failed to meet the deadline, the figure would have escalated by at least £975.
Ms H Hernández completed a garden flat in Crawcrook in September 2003. We are asked if we could approximate the price could be for a ninety year extension to my lease. Comparable residencies in Crawcrook with 100 year plus lease were valued about £218,400. The average amount of ground rent was £60 billed annually. The lease ran out on 18 April 2085. Taking into account 59 years outstanding we calculated the premium to the freeholder for the lease extension to be between £27,600 and £31,800 exclusive of fees.
In 2009 we were phoned by Mrs Lauren Rodríguez who, having was assigned a lease of a purpose-built apartment in Crawcrook in February 2003. We are asked if we could estimate the premium would be for a 90 year lease extension. Comparative residencies in Crawcrook with a long lease were valued around £205,000. The average ground rent payable was £50 invoiced every twelve months. The lease expired on 24 August 2105. Taking into account 79 years left we calculated the premium to the landlord for the lease extension to be within £7,600 and £8,800 plus legals.