The closer a domestic lease in Cromer gets to zero years unexpired, the more it reduces the value of the property. Where the residual term has, in excess of 99 years remaining then this decrease may be of little impact however there will become a stage when a lease has under than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary reason why you should extend the lease sooner rather than later. Most flat owners in Cromer will meet the qualifying criteria; that being said a lawyer can advise if you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Cromer with more than 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service 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. |
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
Retaining our service gives you better control over the value of your Cromer leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
After protracted discussions with the freeholder of her first floor apartment in Cromer, Phoebe commenced the lease extension process as the 80 year mark was fast advancing. The transaction completed in July 2010. The freeholder’s fees were restricted to approximately six hundred GBP.
In 2013 we were approached by Dr N Parker who, having purchased a purpose-built flat in Cromer in August 2010. The dilemma was if we could approximate the premium could be for a ninety year lease extension. Comparative properties in Cromer with an extended lease were valued about £218,000. The mid-range ground rent payable was £45 billed quarterly. The lease ran out in 2088. Having 63 years remaining we approximated the compensation to the landlord for the lease extension to be between £17,100 and £19,800 plus expenses.
In 2011 we were phoned by Mr Dylan Thompson who, having acquired a ground floor apartment in Cromer in August 1999. We are asked if we could approximate the premium would likely be to extend the lease by ninety years. Similar properties in Cromer with a long lease were worth £265,000. The average ground rent payable was £50 collected per annum. The lease ran out on 15 October 2099. Considering the 74 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including costs.