The closer a domestic lease in Croston gets to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, over one hundred years to run then this decrease may be negligible that being said there will become a stage when a lease has less than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main rational as to why you should extend the lease sooner as opposed to later. Many flat owners in Croston will meet the qualifying criteria; however a lawyer will be able to confirm if you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Croston with more than 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Croston,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Croston valuers.
Subsequent to lengthy negotiations with the freeholder of her studio apartment in Croston, Eleanor initiated the lease extension process as the eighty year deadline was swiftly approaching. The lease extension was finalised in April 2006. The landlord’s charges were kept to an absolute minimum.
Last Summer we were e-mailed by Mr and Mrs. V Martin , who moved into a purpose-built flat in Croston in January 2006. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Comparative properties in Croston with 100 year plus lease were in the region of £250,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease ended on 2 November 2094. Considering the 69 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.
Mr and Mrs. S Ali moved into a purpose-built flat in Croston in August 1998. The question was if we could estimate the premium could be for a ninety year extension to my lease. Comparative residencies in Croston with 100 year plus lease were in the region of £285,000. The mid-range ground rent payable was £55 invoiced quarterly. The lease concluded in 2105. Taking into account 80 years outstanding we estimated the premium to the landlord to extend the lease to be within £12,400 and £14,200 plus fees.