It’s an underpublicised certainty that a Crowland residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Crowland property market.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 falls under 80 years - otherwise a higher amount will be due. The majority of flat owners in Crowland will be able to extend under the legislation; however a lawyer will be able to clarify whether you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer for the duration of the process.
Leasehold premises in Crowland with in excess of 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Lloyds TSB Scotland | 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 be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Lease extensions in Crowland can be a difficult process. We recommend you secure professional help from a conveyancer 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 in-depth market knowledge procuring Crowland lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Luca was the the leasehold owner of a high value flat in Crowland on the market with a lease of a little over 72 years left. Luca on an informal basis contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Luca to exercise his statutory right. Luca obtained expert advice and was able to make a more informed decision and handle with the matter and readily saleable.
In 2011 we were e-mailed by Mr U Clarke who, having purchased a ground floor apartment in Crowland in April 2005. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by an additional years. Comparative premises in Crowland with 100 year plus lease were worth £285,000. The mid-range amount of ground rent was £45 billed per annum. The lease elapsed in 2097. Taking into account 71 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus fees.
Mrs Mia Martin completed a one bedroom apartment in Crowland in April 2003. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by 90 years. Comparative residencies in Crowland with 100 year plus lease were worth £230,800. The mid-range ground rent payable was £60 collected yearly. The lease lapsed in 2086. Taking into account 60 years remaining we estimated the compensation to the landlord to extend the lease to be within £24,700 and £28,600 exclusive of fees.