Owning a apartment usually means owning a lease of the property, which has a finite term of years. your lease will ordinarily be granted for a set period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Crowborough. Clearly, the length of lease remaining shortens as time goes by. This is often ignored and only raises itself as an issue when the flat or house has to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Eligible leaseholders in Crowborough have the right to extend the lease for an additional 90 years under statute. You should give due consideration before putting off your Crowborough lease extension. Putting off the cost now likely increases the price you will eventually have to pay to extend your lease
It is conventional wisdom that a property with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Crowborough,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 experience and the close ties they enjoy with Crowborough valuers.
Subsequent to unsuccessful negotiations with the landlord of her ground floor apartment in Crowborough, Rachel commenced the lease extension process as the 80 year deadline was fast coming. The lease extension was finalised in May 2005. The landlord’s costs were negotiated to less than 700 GBP.
Mr Reuben Clark took over the lease of a garden apartment in Crowborough in May 2012. The dilemma was if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Identical residencies in Crowborough with a long lease were valued around £203,200. The mid-range amount of ground rent was £65 billed per annum. The lease expiry date was on 12 October 2086. Having 61 years outstanding we approximated the premium to the landlord for the lease extension to be within £20,000 and £23,000 exclusive of fees.
Last February we were called by Mr and Mrs. U Cook , who completed a one bedroom flat in Crowborough in October 2010. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by ninety years. Identical flats in Crowborough with 100 year plus lease were valued about £260,000. The average ground rent payable was £50 collected monthly. The lease finished in 2097. Having 72 years unexpired we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including fees.