As the the remaining lease term of a Cromer residential lease diminished so does its value and therefore the value of your property. If the lease has, more than 99 years remaining then this decrease may be fractional however there will become a point in time when a lease has fewer 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 primary reason why you should consider extending sooner rather than later. Most flat owners in Cromer will meet the qualifying criteria; however a conveyancing solicitor should be able to advise if you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold residencies in Cromer with over 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Cromer,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Cromer valuers.
Archie was the the leasehold proprietor of a 2 bedroom flat in Cromer on the market with a lease of fraction over 72 years remaining. Archie informally approached his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 yearly. No ground rent would be payable on a lease extension were Archie to invoke his statutory right. Archie procured expert legal guidance and secured an acceptable deal informally and ending up with a market value flat.
Last Christmas we were phoned by Mrs Sophia Morris , who purchased a one bedroom apartment in Cromer in November 2004. We are asked if we could approximate the premium could be for a ninety year extension to my lease. Identical residencies in Cromer with an extended lease were worth £254,200. The mid-range ground rent payable was £60 collected every twelve months. The lease concluded in 2077. Taking into account 51 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £43,700 and £50,600 plus expenses.
Mr and Mrs. G Morel bought a studio apartment in Cromer in October 2001. The dilemma was if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Comparative premises in Cromer with 100 year plus lease were worth £210,600. The average amount of ground rent was £45 billed per annum. The lease ran out on 28 March 2088. Taking into account 62 years left we calculated the premium to the landlord for the lease extension to be between £18,100 and £20,800 plus costs.