With a domestic leasehold premises in Crewkerne, you effectively rent it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater especially once there are fewer than eighty years left. Leasehold owners in Crewkerne with a lease approaching 81 years unexpired should seriously think of extending it sooner as opposed to later. When a lease has under eighty years outstanding, under the relevant Act the freeholder is entitled to calculate and levy a greater amount, based on a technical multiplication, known as “marriage value” which is payable.
Leasehold properties in Crewkerne with in excess of one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Crewkerne,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Crewkerne valuers.
In 2014 Jasper, started to get near to the eighty-year mark with the lease on his leasehold flat in Crewkerne. In buying his property two decades ago, the length of the lease was of little bearing. Luckily, he became aware that he needed to take steps soon on a lease extension. Jasper was able to extend his lease just in the nick of time in June. Jasper and the freeholder subsequently settled on sum of £5,000 . If the lease had gone below 80 years, the sum would have gone up by at least £1,050.
Mr and Mrs. D Stewart moved into a basement flat in Crewkerne in April 1995. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Comparative properties in Crewkerne with 100 year plus lease were worth £200,800. The average ground rent payable was £65 invoiced yearly. The lease expired on 21 October 2085. Given that there were 60 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £20,900 and £24,200 not including legals.
Last Autumn we were called by Dr Phoebe Flores , who acquired a studio apartment in Crewkerne in June 2005. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Similar premises in Crewkerne with a long lease were valued around £255,000. The average amount of ground rent was £50 invoiced quarterly. The lease terminated on 25 June 2096. Given that there were 71 years remaining we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including costs.