There is no doubt about it a leasehold flat or house in Crawley is a wasting asset as a result of the shortening lease. If the residual term has, in excess of 100 years remaining then this decrease may be of little impact that being said there will become a point in time when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should consider extending sooner rather than later. The majority of flat owners in Crawley will meet the qualifying criteria; that being said a lawyer should be able to advise if you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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 also be not less than 75 years at the outset 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. |
Lease extensions in Crawley can be a difficult process. We recommend you get 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 procuring Crawley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Stanley, came perilously near to the eighty-year threshold with the lease on his purpose- built apartment in Crawley. Having bought his flat 18 years previously, the length of the lease was of minimal relevance. by good luck, it dawned on him that he needed to take action soon on a lease extension. Stanley was able to extend his lease just under the wire last May. Stanley and the freeholder via the managing agents subsequently agreed on a premium of £6,000 . If the lease had dropped lower than eighty years, the premium would have escalated by a minimum £1,125.
In 2009 we were contacted by Mr Mason Ward who, having owned a ground floor flat in Crawley in January 2002. The dilemma was if we could estimate the premium could be to prolong the lease by an additional years. Identical premises in Crawley with a long lease were valued around £176,200. The average ground rent payable was £65 collected per annum. The lease elapsed in 2081. Considering the 56 years remaining we calculated the premium to the landlord to extend the lease to be between £29,500 and £34,000 exclusive of expenses.
Last month we were contacted by Mr Zachary Martinez , who purchased a one bedroom apartment in Crawley in May 2007. The question was if we could shed any light on how much (approximately) price would be for a 90 year lease extension. Similar residencies in Crawley with an extended lease were in the region of £242,600. The average amount of ground rent was £45 collected quarterly. The lease finished in 2092. Considering the 67 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £11,400 and £13,200 plus fees.