When it comes to domestic leasehold premises in Crawley, you are actually purchasing an entitlement to live in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are less than 80 years remaining. Anyone in Crawley with a lease approaching 81 years left should seriously think of extending it as soon as possible. When the lease term has under 80 years left, under the relevant Act the landlord is entitled to calculate and demand a greater amount, based on a technical multiplication, known as “marriage value” which is payable.
Leasehold properties in Crawley with more than one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you increased control over the value of your Crawley leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Noah was the the leasehold proprietor of a studio flat in Crawley being sold with a lease of just over fifty eight years unexpired. Noah on an informal basis approached his landlord being 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 to start with set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Noah to exercise his statutory right. Noah procured expert legal guidance and secured satisfactory resolution informally and readily saleable.
Last month we were approach by Mrs Harriet Wilson , who bought a ground floor apartment in Crawley in April 2007. The dilemma was if we could approximate the premium would likely be for a ninety year lease extension. Comparative premises in Crawley with an extended lease were in the region of £265,000. The mid-range ground rent payable was £50 invoiced yearly. The lease expiry date was in 2098. Considering the 73 years unexpired we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus costs.
Last month we were called by Mr C Robinson , who completed a studio flat in Crawley in October 1999. The question was if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year lease extension. Comparative premises in Crawley with 100 year plus lease were valued around £264,000. The average amount of ground rent was £60 collected per annum. The lease lapsed on 20 September 2078. Taking into account 53 years outstanding we approximated the premium to the freeholder to extend the lease to be within £37,100 and £42,800 not including expenses.