For those whose Crick flat is held on a long lease, our message is clear – if nothing is done, the property will ultimately revert to the freeholder, leaving you empty-handed. The shorter the lease the less it is worth and the more expensive it will be to procure a lease extension.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Crick,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Crick valuers.
Sebastian was the the leasehold proprietor of a high value flat in Crick on the market with a lease of just over 72 years unexpired. Sebastian informally spoke with his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Sebastian to exercise his statutory right. Sebastian obtained expert legal guidance and was able to make a more informed decision and deal with the matter and sell the flat.
Mrs I Evans took over the lease of a one bedroom apartment in Crick in June 2008. We are asked if we could estimate the compensation to the landlord could be to extend the lease by an additional years. Identical flats in Crick with a long lease were worth £255,000. The mid-range amount of ground rent was £50 billed monthly. The lease end date was on 13 July 2095. Considering the 70 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including legals.
Last Autumn we were phoned by Mr and Mrs. O Young , who completed a recently refurbished apartment in Crick in October 1996. We are asked if we could approximate the premium would be for a ninety year lease extension. Similar flats in Crick with an extended lease were valued around £246,800. The mid-range amount of ground rent was £60 billed yearly. The lease elapsed in 2075. Taking into account 50 years remaining we approximated the compensation to the landlord to extend the lease to be within £44,700 and £51,600 not including fees.