Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will usually be granted for a fixed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Crosby. Inevitably, the length of lease left reduces as time goes by. This may slip by relatively unnoticed when the property needs to be disposed of or refinanced. The shorter the lease the less it is worth and the more it will cost to extend the lease. Qualifying leaseholders in Crosby have the legal entitlement to extend the lease for an additional 90 years under statute. Please give careful attention before delaying your Crosby lease extension. Holding off that expense now likely increases the price you will eventually have to pay for a lease extension
Leasehold residencies in Crosby with in excess of 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with undertake 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 conveyancer we work with provide it.
During the course of the last few months Milo, started to get near to the 80-year threshold with the lease on his ground floor flat in Crosby. Having purchased his property twenty years previously, the unexpired term was of minimal bearing. by good luck, he realised he would soon be paying way over the odds for a lease extension. Milo was able to extend his lease just under the wire last April. Milo and the freeholder via the management company in the end settled on the final figure of £5,000 . If he failed to meet the deadline, the price would have gone up by at least £1,125.
Mrs Y Simon completed a one bedroom flat in Crosby in January 2004. We are asked if we could shed any light on how much (roughly) premium would likely be to extend the lease by 90 years. Similar flats in Crosby with a long lease were valued about £290,000. The mid-range ground rent payable was £45 billed per annum. The lease finished on 9 August 2099. Having 73 years left we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of expenses.
Ms E Smith owned a ground floor apartment in Crosby in July 2011. We are asked if we could shed any light on how much (roughly) premium would likely be to extend the lease by ninety years. Comparative residencies in Crosby with an extended lease were worth £240,600. The mid-range ground rent payable was £60 collected yearly. The lease concluded in 2088. Given that there were 62 years outstanding we calculated the compensation to the landlord to extend the lease to be between £21,900 and £25,200 exclusive of expenses.