When it comes to residential leasehold property in Crawley Down, you are in fact renting it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater particularly once there are fewer than eighty years left. Leasehold owners in Crawley Down with a lease nearing 81 years left should seriously think of extending it without delay. When a lease has fewer than eighty years outstanding, under the current Act the landlord is entitled to calculate and levy a larger premium, based on a technical computation, strangely termed as “marriage value” which is payable.
It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
The conveyancers that we work with procure Crawley Down lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Thomas owned a studio flat in Crawley Down on the market with a lease of a little over 59 years unexpired. Thomas on an informal basis spoke with his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £150 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Thomas to invoke his statutory right. Thomas obtained expert legal guidance and secured satisfactory resolution without resorting to tribunal and sell the flat.
Mr and Mrs. O Morgan moved into a one bedroom flat in Crawley Down in June 2001. We are asked if we could approximate the price could be to prolong the lease by 90 years. Similar residencies in Crawley Down with a long lease were valued around £280,000. The mid-range amount of ground rent was £45 invoiced monthly. The lease elapsed in 2095. Considering the 69 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including legals.
Dr V Bennett acquired a one bedroom apartment in Crawley Down in February 2003. We are asked if we could estimate the premium would likely be for a 90 year extension to my lease. Comparative homes in Crawley Down with a long lease were valued about £216,000. The mid-range amount of ground rent was £60 invoiced monthly. The lease ran out in 2084. Considering the 58 years unexpired we estimated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of expenses.