When it comes to long leasehold premises in Cromer, you are actually buying an entitlement to live in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are less than 80 years left. Anyone in Cromer with a lease drawing near to 81 years left should seriously consider extending it sooner rather than later. Once the lease term has under 80 years remaining, under the relevant statute the landlord can calculate and levy a greater amount, based on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold residencies in Cromer with over 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with handle Cromer lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Subsequent to unsuccessful correspondence with the landlord of her first floor apartment in Cromer, Olivia commenced the lease extension process as the 80 year deadline was swiftly advancing. The legal work was concluded in October 2014. The landlord’s charges were kept to an absolute minimum.
In 2010 we were phoned by Mr and Mrs. N Mercier who, having acquired a purpose-built flat in Cromer in May 2004. The dilemma was if we could shed any light on how much (approximately) price could be to extend the lease by 90 years. Comparative properties in Cromer with 100 year plus lease were worth £200,800. The mid-range ground rent payable was £65 invoiced quarterly. The lease expired on 15 February 2085. Taking into account 60 years outstanding we estimated the premium to the freeholder to extend the lease to be within £20,900 and £24,200 not including fees.
Mr and Mrs. B Martin acquired a recently refurbished flat in Cromer in May 2000. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by 90 years. Similar properties in Cromer with a long lease were in the region of £255,000. The average ground rent payable was £50 collected quarterly. The lease finished in 2096. Taking into account 71 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus costs.