With a residential leasehold property in Crowland, you are actually purchasing an entitlement to live in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive especially once there are less than 80 years remaining. Leasehold owners in Crowland with a lease nearing 81 years left should seriously consider extending it as soon as possible. Once a lease has below eighty years outstanding, under the relevant legislation the landlord is entitled to calculate and charge a larger amount, assessed on a technical computation, strangely termed as “marriage value” which is due.
It is generally accepted that a property with over 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Lease extensions in Crowland can be a difficult process. We recommend you procure guidance from a conveyancer 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 in-depth market knowledge dealing with Crowland lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 9 months of lengthy discussions with the freeholder of her one bedroom flat in Crowland, Georgina started the lease extension process just as the lease was nearing the crucial eighty-year threshold. The lease extension completed in January 2011. The landlord’s charges were restricted to slightly above 700 GBP.
In 2010 we were e-mailed by Mrs T Martinez who, having was assigned a lease of a garden flat in Crowland in November 2002. The question was if we could approximate the premium would be to prolong the lease by a further 90 years. Identical flats in Crowland with an extended lease were valued around £280,000. The average amount of ground rent was £45 invoiced every twelve months. The lease finished in 2095. Given that there were 69 years remaining we approximated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 not including costs.
Last November we were phoned by Dr D Nelson , who purchased a purpose-built flat in Crowland in October 2011. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Similar flats in Crowland with 100 year plus lease were in the region of £216,000. The mid-range amount of ground rent was £60 billed annually. The lease finished in 2084. Given that there were 58 years outstanding we estimated the premium to the landlord for the lease extension to be within £28,500 and £33,000 plus professional charges.