It’s an underpublicised certainty that a Croston residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Croston property prices.Once your lease nears 85ish years, you should start thinking about 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 lower than 80 years - otherwise a higher premium will be due. The majority of 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 cases you may not be entitled. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
It is generally considered that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Leeds Building Society | |
| Nationwide Building Society | |
| Virgin |
Lease extensions in Croston can be a difficult process. We recommend you get guidance from a conveyancing solicitor and surveyor with experience in this area.
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.
In 2014 Teddy, came very near to the eighty-year threshold with the lease on his one bedroom apartment in Croston. Having bought his home 19 years ago, the length of the lease was of minimal significance. As luck would have it, he realised he would imminently be paying an escalated premium for Extending the lease. Teddy was able to extend his lease just under the wire in June. Teddy and the landlord who owned the flat above ultimately settled on an amount of £5,000 . If the lease had slid to less than 80 years, the sum would have increased by at least £925.
Mr and Mrs. J Leroy was assigned a lease of a one bedroom apartment in Croston in March 2000. The question was if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Similar properties in Croston with 100 year plus lease were worth £255,000. The mid-range ground rent payable was £50 collected per annum. The lease concluded in 2097. Considering the 71 years outstanding we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of costs.
In 2010 we were called by Dr H Smith who, having was assigned a lease of a garden apartment in Croston in August 2009. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year lease extension. Comparable flats in Croston with 100 year plus lease were in the region of £254,200. The average amount of ground rent was £60 billed monthly. The lease expired in 2077. Considering the 51 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £43,700 and £50,600 exclusive of fees.