Crewkerne leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Crewkerne residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Crewkerne you should check if your lease has between seventy and ninety years remaining. There are good reasons why a Crewkerne leaseholder with a lease having around 80 years unexpired should take steps to ensure that a lease extension is put in place without delay
Leasehold properties in Crewkerne with in excess of one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Regardless of whether you are a tenant or a freeholder in Crewkerne,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Crewkerne valuers.
Two years ago Jacob, started to get close to the 80-year mark with the lease on his first floor flat in Crewkerne. Having bought his home two decades ago, the length of the lease was of minimal concern. Thankfully, he realised he would soon be paying an escalated premium for Extending the lease. Jacob was able to extend his lease just ahead of time last August. Jacob and the freeholder eventually agreed on a premium of £5,500 . If he had missed the deadline, the figure would have gone up by a minimum £1,050.
Mrs I Thompson acquired a garden flat in Crewkerne in September 2004. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Identical properties in Crewkerne with a long lease were worth £285,000. The average amount of ground rent was £55 invoiced yearly. The lease finished on 4 February 2104. Taking into account 79 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 not including professional charges.
Last Summer we were contacted by Mr and Mrs. G Brown , who owned a garden apartment in Crewkerne in November 2007. We are asked if we could approximate the premium could be to prolong the lease by 90 years. Similar homes in Crewkerne with a long lease were in the region of £193,400. The mid-range ground rent payable was £65 invoiced per annum. The lease ran out on 11 May 2084. Taking into account 59 years left we approximated the premium to the freeholder for the lease extension to be between £21,900 and £25,200 plus legals.