Crosby leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Crosby enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Crosby you really ought to investigate if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| 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. |
The conveyancers that we work with procure Crosby lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Following protracted negotiations with the landlord of her garden flat in Crosby, Sian started the lease extension process as the 80 year mark was rapidly nearing. The legal work was finalised in February 2007. The freeholder’s fees were kept to an absolute minimum.
In 2011 we were approached by Mr and Mrs. A Vincent who, having moved into a ground floor apartment in Crosby in June 2004. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Identical residencies in Crosby with an extended lease were valued around £206,200. The average amount of ground rent was £60 billed every twelve months. The lease ended on 28 May 2081. Considering the 56 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £32,300 and £37,400 not including fees.
Mr and Mrs. W Peterson acquired a newly refurbished apartment in Crosby in January 2001. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year extension to my lease. Similar flats in Crosby with 100 year plus lease were valued about £300,000. The mid-range amount of ground rent was £50 collected monthly. The lease finished on 25 November 2101. Having 76 years remaining we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 not including expenses.