Unfortunately that a Crewkerne residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Crewkerne property market.Once your lease nears 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than eighty years - otherwise a higher amount will be due. Most leasehold owners in Crewkerne will be able to extend under the legislation; however a lawyer should be able to confirm whether you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your lawyer from beginning to end of the process.
It is generally accepted that a property with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Crewkerne can be a difficult process. We recommend you procure guidance from a conveyancer and surveyor 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 a wealth of experience dealing with Crewkerne lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Zachary owned a high value apartment in Crewkerne on the market with a lease of a little over 59 years outstanding. Zachary on an informal basis spoke with his freeholder being a well known local-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 at the outset set at £200 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Zachary to exercise his statutory right. Zachary obtained expert advice and was able to make a more informed decision and handle with the matter and sell the flat.
In 2012 we were contacted by Mr O Jones who, having moved into a one bedroom flat in Crewkerne in October 2000. The question was if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year extension to my lease. Comparative premises in Crewkerne with a long lease were worth £265,000. The mid-range amount of ground rent was £55 collected per annum. The lease came to a finish on 3 July 2100. Considering the 74 years remaining we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus costs.
Last Autumn we were phoned by Mr and Mrs. D Carter , who moved into a newly refurbished apartment in Crewkerne in June 1995. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable flats in Crewkerne with a long lease were valued about £166,400. The average ground rent payable was £60 invoiced annually. The lease ran out in 2080. Having 54 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £32,300 and £37,400 not including expenses.