For anyone whose Crosby home is held on a long lease, the message is clear – if you ignore the situation, your property will eventually revert to your landlord, leaving you empty-handed. The fewer the years remaining the less it is worth and the more it will cost to procure a lease extension.
Leasehold properties in Crosby with more than one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Crosby can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Crosby lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Aaron, came dangerously close to the 80-year threshold with the lease on his studio apartment in Crosby. Having bought his property two decades ago, the length of the lease was of little concern. Fortunately, he became aware that he would imminently be paying an escalated premium for Extending the lease. Aaron arranged for a lease extension at the eleventh hour last June. Aaron and the landlord eventually settled on the final figure of £5,000 . If he had missed the deadline, the premium would have escalated by a minimum £1,100.
In 2011 we were phoned by Mr and Mrs. C Rogers who, having completed a first floor apartment in Crosby in October 2002. We are asked if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Comparable flats in Crosby with 100 year plus lease were in the region of £300,000. The mid-range amount of ground rent was £50 collected annually. The lease concluded on 19 November 2100. Considering the 75 years left we calculated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 plus legals.
Last Summer we were contacted by Ms T Taylor , who bought a first floor flat in Crosby in September 2003. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Comparative premises in Crosby with 100 year plus lease were worth £250,400. The average amount of ground rent was £65 collected every twelve months. The lease termination date was in 2089. Considering the 64 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £19,000 and £22,000 exclusive of fees.