Chances are that if you own a flat in Crawley Down you actually own a long leasehold interest over your property
Leasehold properties in Crawley Down with over 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 lawyers that we work with undertake 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 lawyer we work with provide it.
Hunter owned a 2 bedroom flat in Crawley Down on the market with a lease of a few days over sixty years remaining. Hunter on an informal basis approached his landlord a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Hunter to invoke his statutory right. Hunter procured expert advice and secured satisfactory deal informally and readily saleable.
In 2010 we were e-mailed by Ms E Simon who, having bought a studio apartment in Crawley Down in April 2009. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Comparative properties in Crawley Down with a long lease were in the region of £171,800. The mid-range ground rent payable was £55 collected per annum. The lease ran out in 2076. Considering the 50 years outstanding we approximated the premium to the landlord for the lease extension to be between £32,300 and £37,400 exclusive of costs.
Last Christmas we were called by Mr and Mrs. W Rose , who completed a first floor apartment in Crawley Down in March 2001. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar homes in Crawley Down with a long lease were in the region of £280,000. The mid-range amount of ground rent was £45 collected annually. The lease concluded on 10 August 2096. Having 70 years remaining we approximated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of legals.