When it comes to domestic leasehold property in Cromer, you are actually purchasing an entitlement to reside in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about a lease extension 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 fewer than 80 years left. Anyone in Cromer with a lease approaching 81 years left should seriously consider extending it sooner than later. Once a lease has under eighty years remaining, under the relevant legislation the freeholder is entitled to calculate and demand a greater premium, assessed on a technical calculation, strangely termed as “marriage value” which is due.
It is generally accepted that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service will provide you enhanced control over the value of your Cromer leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Following unsuccessful negotiations with the freeholder of her ground floor flat in Cromer, Hannah started the lease extension process as the eighty year threshold was fast approaching. The lease extension completed in June 2009. The landlord’s charges were kept to an absolute minimum.
Ms S Collins took over the lease of a purpose-built flat in Cromer in February 2008. The dilemma was if we could estimate the premium would likely be to prolong the lease by an additional years. Comparable residencies in Cromer with 100 year plus lease were valued about £255,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease elapsed in 2096. Given that there were 70 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of fees.
In 2010 we were called by Mr and Mrs. A Collins who, having bought a newly refurbished apartment in Cromer in October 2003. We are asked if we could estimate the premium would be for a 90 year lease extension. Identical properties in Cromer with 100 year plus lease were valued about £246,800. The mid-range ground rent payable was £60 invoiced monthly. The lease finished in 2076. Considering the 50 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £44,700 and £51,600 exclusive of expenses.