Crawley Down leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. It is the case that most Crawley Down tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Crawley Down you would be well advised to see if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
It is generally accepted that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Lloyds TSB Scotland | 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 |
Retaining our service will provide you increased control over the value of your Crawley Down leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jamie was the the leasehold owner of a conversion flat in Crawley Down on the market with a lease of just over 61 years remaining. Jamie on an informal basis spoke with his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Jamie to invoke his statutory right. Jamie procured expert legal guidance and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
Last Summer we were called by Ms M Sharif , who was assigned a lease of a ground floor flat in Crawley Down in March 1995. We are asked if we could approximate the price would likely be for a ninety year extension to my lease. Similar properties in Crawley Down with a long lease were valued around £250,400. The mid-range amount of ground rent was £65 invoiced quarterly. The lease concluded in 2089. Taking into account 64 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £19,000 and £22,000 plus legals.
Last Autumn we were e-mailed by Dr H Evans , who took over the lease of a purpose-built flat in Crawley Down in October 2009. The question was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Comparable homes in Crawley Down with a long lease were valued about £189,000. The average ground rent payable was £55 invoiced every twelve months. The lease expired on 11 July 2078. Given that there were 53 years unexpired we approximated the premium to the landlord for the lease extension to be between £28,500 and £33,000 exclusive of fees.