Owning a apartment usually means owning a lease of the property, which has a set term of years. your lease will normally be granted for a fixed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Crawley. Clearly, the length of lease remaining reduces as time goes by. This may pass by relatively unnoticed when the residence has to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to procure a lease extension. Qualifying leaseholders in Crawley have the right to extend the lease for a further 90 years in accordance with legislation. You should give careful deliberation before delaying your Crawley lease extension. Putting off that expense now simply increases the price you will eventually have to pay for a lease extension
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with procure Crawley 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 conveyancing solicitor we work with provide it.
In the wake of 9 months of unsuccessful correspondence with the landlord of her two bedroom flat in Crawley, Lydia commenced the lease extension process just as the lease was nearing the all-important eighty-year deadline. The lease extension was finalised in September 2005. The freeholder’s fees were kept to an absolute minimum.
Mr and Mrs. L Nguyen purchased a purpose-built flat in Crawley in April 2003. We are asked if we could estimate the premium could be to prolong the lease by 90 years. Comparative properties in Crawley with a long lease were valued around £254,200. The mid-range ground rent payable was £60 billed per annum. The lease ran out on 21 September 2077. Taking into account 51 years outstanding we approximated the premium to the landlord to extend the lease to be between £43,700 and £50,600 plus costs.
Last October we were e-mailed by Mr and Mrs. B Khan , who was assigned a lease of a ground floor apartment in Crawley in May 1995. The dilemma was if we could approximate the premium would be for a 90 year lease extension. Comparative premises in Crawley with an extended lease were in the region of £210,600. The average amount of ground rent was £45 billed quarterly. The lease lapsed in 2088. Having 62 years remaining we estimated the compensation to the landlord for the lease extension to be between £18,100 and £20,800 not including professional charges.