When it comes to residential leasehold premises in Crosby, you effectively rent it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may 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 particularly when there are less than eighty years left. Anyone in Crosby with a lease drawing near to 81 years remaining should seriously consider extending it as soon as possible. Once a lease has under eighty years outstanding, under the current statute the freeholder is entitled to calculate and demand a larger premium, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
Regardless of whether you are a tenant or a freeholder in Crosby,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Crosby valuers.
Last October Arthur, started to get close to the eighty-year threshold with the lease on his two bedroom apartment in Crosby. Having bought his home twenty years previously, the unexpired term was of minimal importance. Thankfully, it dawned on him that he would soon be paying way over the odds for Extending the lease. Arthur extended the lease just in the nick of time last March. Arthur and the freeholder via the management company eventually agreed on the final figure of £5,500 . If he had missed the deadline, the amount would have gone up by a minimum £925.
Mr M Lambert took over the lease of a studio apartment in Crosby in March 2008. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Comparative flats in Crosby with an extended lease were valued about £275,000. The mid-range amount of ground rent was £65 collected yearly. The lease ran out on 11 August 2093. Having 68 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 plus fees.
In 2009 we were contacted by Dr William Green who, having purchased a studio flat in Crosby in May 1999. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparable properties in Crosby with a long lease were worth £208,600. The average amount of ground rent was £60 billed every twelve months. The lease elapsed in 2082. Given that there were 57 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 plus legals.