When it comes to long leasehold premises in Crawley, you are in fact renting it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater notably when there are fewer than 80 years left. Leasehold owners in Crawley with a lease drawing near to 81 years remaining should seriously think of extending it without delay. Once the lease term has fewer than 80 years left, under the current legislation the freeholder is entitled to calculate and demand a greater amount, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold residencies in Crawley with over 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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 |
Lease extensions in Crawley can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Crawley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Rory was the the leasehold proprietor of a studio flat in Crawley on the market with a lease of fraction over fifty eight years outstanding. Rory on an informal basis spoke with his landlord a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £200 annually. Ordinarily, ground rent would not be due on a lease extension were Rory to exercise his statutory right. Rory procured expert legal guidance and was able to make a more informed decision and handle with the matter and sell the flat.
In 2012 we were called by Mr and Mrs. S Bonnet who, having purchased a first floor flat in Crawley in July 2009. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Similar residencies in Crawley with an extended lease were worth £218,000. The mid-range ground rent payable was £45 billed every twelve months. The lease ran out on 25 January 2089. Given that there were 63 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £17,100 and £19,800 plus costs.
In 2011 we were approached by Mr and Mrs. V Gunderson who, having bought a one bedroom flat in Crawley in February 2011. The question was if we could shed any light on how much (approximately) price would likely be to extend the lease by a further 90 years. Identical homes in Crawley with an extended lease were valued about £265,000. The average amount of ground rent was £55 collected per annum. The lease expired in 2100. Taking into account 74 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus legals.