As the length of the unexpired term of a Crouch End residential lease diminished so does its value and therefore the value of your property. If the lease has, over 125 years to run then this decrease may be negligible nevertheless there will become a point in time when a lease has less than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should consider extending without delay. Most flat owners in Crouch End will meet the qualifying criteria; nevertheless a lawyer can advise if you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold premises in Crouch End with more than 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Godiva Mortgages | 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you enhanced control over the value of your Crouch End leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing lengthy correspondence with the freeholder of her studio flat in Crouch End, Jennifer initiated the lease extension process just as the lease was nearing the critical eighty-year mark. The lease extension was finalised in November 2008. The freeholder’s fees were kept to an absolute minimum.
In 2011 we were contacted by Mr C Bennett who, having acquired a one bedroom flat in Crouch End in October 2011. The question was if we could estimate the premium would be for a 90 year extension to my lease. Similar premises in Crouch End with 100 year plus lease were valued about £280,000. The mid-range amount of ground rent was £55 collected annually. The lease ended in 2104. Taking into account 78 years remaining we calculated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 plus fees.
An example of a Lease Extension case for a Crouch End residence is Flat 2A 19 Shepherds Hill in June 2014. The tribunal concluded in accordance with section 48 and schedule 13 of the Leasehold Reform,Housing and Urban Development Act (the 1993 Act) that the premium payable in respect of the grant of a new lease for the Flat be £24,303 (twenty four thousand three hundred and three pounds) This case was in relation to 1 flat. The unexpired residue of the current lease was 67.85 years.