Crosby leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. It is the case that most Crosby tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Crosby you really ought to see if your lease has between seventy and 90 years remaining. There are compelling reasons why a Crosby flat owner with a lease having around eighty years unexpired should take steps to ensure that a lease extension is effected without delay
It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
Lease extensions in Crosby can be a difficult process. We recommend you procure professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 in-depth market knowledge 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.
Subsequent to unsuccessful discussions with the freeholder of her studio apartment in Crosby, Jade started the lease extension process as the 80 year deadline was quickly coming. The legal work was finalised in March 2007. The landlord’s costs were kept to an absolute minimum.
Mr and Mrs. S Sharif purchased a one bedroom apartment in Crosby in September 2009. The question was if we could estimate the premium could be for a ninety year extension to my lease. Similar residencies in Crosby with 100 year plus lease were worth £210,000. The average amount of ground rent was £50 collected per annum. The lease end date was on 1 August 2106. Having 80 years left we calculated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 not including fees.
In 2013 we were contacted by Mr and Mrs. L Allen who, having moved into a studio apartment in Crosby in April 1997. The question was if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Comparable properties in Crosby with 100 year plus lease were in the region of £280,000. The mid-range ground rent payable was £45 collected monthly. The lease lapsed on 24 January 2095. Taking into account 69 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 plus legals.