For those whose Crick flat is held on a long lease, our message is clear – if you do nothing, the property will eventually revert to the freeholder, leaving you empty-handed. The shorter the lease the less it is worth and the more it will cost to procure a lease extension.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years left, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service will provide you increased control over the value of your Crick leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Following protracted negotiations with the freeholder of her purpose-built apartment in Crick, Sophie started the lease extension process just as the lease was nearing the critical eighty-year deadline. The lease extension was concluded in May 2015. The freeholder’s charges were kept to an absolute minimum.
Last month we were called by Mr and Mrs. B Parker , who took over the lease of a one bedroom flat in Crick in May 2004. We are asked if we could approximate the premium would be for a ninety year lease extension. Comparative homes in Crick with 100 year plus lease were in the region of £218,000. The average ground rent payable was £45 invoiced monthly. The lease elapsed in 2088. Having 63 years left we estimated the premium to the freeholder for the lease extension to be within £17,100 and £19,800 not including fees.
Last Winter we were e-mailed by Mrs A Gunderson , who bought a purpose-built apartment in Crick in September 2010. The dilemma 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. Similar properties in Crick with an extended lease were worth £270,000. The average amount of ground rent was £55 collected per annum. The lease ran out on 3 August 2099. Taking into account 74 years remaining we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of costs.