When it comes to residential leasehold premises in Crawley Down, you effectively rent it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater notably when there are fewer than eighty years remaining. Leasehold owners in Crawley Down with a lease drawing near to 81 years left should seriously consider extending it without delay. When the lease term has less than 80 years outstanding, under the relevant legislation the landlord is entitled to calculate and levy a larger amount, assessed on a technical computation, strangely termed as “marriage value” which is due.
It is generally accepted that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Regardless of whether you are a tenant or a landlord in Crawley Down,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Crawley Down valuers.
In recent months James, started to get close to the eighty-year mark with the lease on his garden flat in Crawley Down. In buying his home 19 years ago, the unexpired term was of minimal importance. Luckily, he recognised he would imminently be paying an inflated amount for Extending the lease. James arranged for a lease extension just ahead of time last August. James and the freeholder eventually agreed on sum of £6,000 . If he had missed the deadline, the figure would have gone up by a minimum £1,125.
Ms L Watson was assigned a lease of a garden apartment in Crawley Down in March 2006. We are asked if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Similar premises in Crawley Down with a long lease were valued around £198,800. The average ground rent payable was £55 invoiced yearly. The lease lapsed in 2081. Given that there were 55 years outstanding we calculated the premium to the freeholder to extend the lease to be within £33,300 and £38,400 not including costs.
Last Summer we were phoned by Mr M Kelly , who bought a studio apartment in Crawley Down in November 1995. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Comparable homes in Crawley Down with a long lease were worth £300,000. The average amount of ground rent was £50 billed quarterly. The lease ran out on 20 October 2101. Considering the 75 years left we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus professional charges.