Crick leases on domestic deteriorating in value. Where your lease has in the region of 90 years unexpired, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease dips below this level then you start paying an additional element called marriage value. Leasehold owners in Crick will mostly qualify for a lease extension; however a solicitor should be able check if you qualify. In certain circumstances you may not be entitled. There are prescribed timetables and formalities to follow once the process has commenced so it’s prudent to be guided by a lawyer during the process.
Leasehold residencies in Crick with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Regardless of whether you are a tenant or a freeholder in Crick,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 Crick valuers.
Half a year ago Elijah, came dangerously close to the eighty-year mark with the lease on his first floor flat in Crick. In buying his property two decades ago, the length of the lease was of no concern. Fortunately, it dawned on him that he needed to take action soon on Extending the lease. Elijah was able to extend his lease just under the wire in January. Elijah and the freeholder via the management company in the end agreed on sum of £6,000 . If he not met the deadline, the price would have become more exhorbitant by a minimum £850.
Dr Andrew Carter bought a garden apartment in Crick in May 2010. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Identical homes in Crick with a long lease were in the region of £191,000. The average amount of ground rent was £65 billed every twelve months. The lease termination date was in 2084. Considering the 58 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £23,800 and £27,400 not including fees.
Dr K Alexander completed a one bedroom flat in Crick in May 1998. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Similar premises in Crick with an extended lease were in the region of £250,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease came to a finish on 2 June 2095. Given that there were 69 years outstanding we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including professional charges.