It’s an underpublicised certainty that a Croston residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Croston property prices.Once your lease nears 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below 80 years - otherwise a higher amount will be due. Most flat owners in Croston will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancing solicitor throughout the formalities.
Leasehold properties in Croston with more than 100 years remaining 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 buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Barnsley Building Society | |
| Coventry Building Society | |
| Nationwide Building Society |
Lease extensions in Croston can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and valuer 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 a wealth of experience procuring Croston lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Freddie was the the leasehold proprietor of a studio flat in Croston being sold with a lease of a little over fifty eight years left. Freddie on an informal basis approached his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 per annum. Ordinarily, ground rent would not be due on a lease extension were Freddie to exercise his statutory right. Freddie procured expert advice and was able to make a more informed decision and deal with the matter and readily saleable.
Mr and Mrs. U Turner bought a one bedroom flat in Croston in November 2003. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by an additional years. Comparable homes in Croston with a long lease were in the region of £168,800. The average amount of ground rent was £60 invoiced annually. The lease terminated in 2081. Having 55 years outstanding we approximated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 not including professional charges.
Mr and Mrs. K Thomas purchased a first floor flat in Croston in February 2005. The question was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Identical premises in Croston with 100 year plus lease were in the region of £235,200. The mid-range amount of ground rent was £45 billed annually. The lease expiry date was in 2092. Taking into account 66 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 plus legals.