The nearer a domestic lease in Crofton nears to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, over 100 years to run then this decrease may be negligible however there will become a stage when a lease has under than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should extend the lease sooner as opposed to later. Most flat owners in Crofton will qualify for this right; that being said a conveyancing solicitor can advise whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is generally considered that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an additional 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 |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| 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 Crofton can be a difficult process. We recommend you get guidance from a lawyer 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 in-depth market knowledge procuring Crofton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following unsuccessful discussions with the freeholder of her ground floor flat in Crofton, Jade commenced the lease extension process as the 80 year deadline was swiftly approaching. The lease extension was finalised in July 2011. The freeholder’s fees were restricted to less than 450 pounds.
Last November we were approach by Dr Lydia Rose , who owned a ground floor flat in Crofton in April 1995. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year extension to my lease. Comparable premises in Crofton with 100 year plus lease were in the region of £227,800. The average ground rent payable was £45 invoiced quarterly. The lease concluded in 2091. Considering the 65 years left we calculated the premium to the landlord to extend the lease to be between £13,300 and £15,400 not including costs.
In 2009 we were contacted by Dr David Jones who, having purchased a one bedroom flat in Crofton in January 1997. The dilemma was if we could estimate the price could be to extend the lease by a further 90 years. Similar properties in Crofton with 100 year plus lease were valued around £275,000. The average amount of ground rent was £55 collected per annum. The lease finished on 28 March 2102. Considering the 76 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus legals.