Why you should commence your Crowland lease extension

Top reasons for lease extension now:

A Crowland lease depreciates with the years remaining on the lease.

Crowland leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Crowland tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Crowland you really ought to see if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value

An extended lease is almost the same value as a freehold

Leasehold properties in Crowland with more than 100 years unexpired 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 to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.

Mortgage lenders may decide not to grant a mortgage with a short lease

Most mortgage companies will be unwilling to lend on a lease with under seventy years remaining - although this varies from lender to lender. A buyer will likely encounter difficulties to obtain a mortgage and this will result in your Crowland property becoming difficult to dispose of or refinance.

Get in touch with one of our Crowland lease extension solicitors or enfranchisement solicitors

Irrespective of whether you are a tenant or a freeholder in Crowland,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Crowland valuers.

Crowland Lease Extension Example Cases:

Alfie, Crowland, Lincolnshire,

Alfie owned a studio flat in Crowland on the market with a lease of a little over 72 years unexpired. Alfie on an informal basis spoke with his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Alfie to exercise his statutory right. Alfie obtained expert legal guidance and was able to make an informed decision and handle with the matter and readily saleable.

Crowland case:

Dr Lewis Lefèvre owned a studio apartment in Crowland in July 2002. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparative residencies in Crowland with 100 year plus lease were valued around £300,000. The average amount of ground rent was £50 collected every twelve months. The lease ran out in 2102. Given that there were 76 years left we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of professional charges.

Crowland case:

Last month we were approach by Dr B Collins , who bought a one bedroom apartment in Crowland in April 1997. The question was if we could estimate the compensation to the landlord could be to prolong the lease by an additional years. Comparative premises in Crowland with a long lease were in the region of £257,800. The average amount of ground rent was £65 invoiced every twelve months. The lease expired on 23 October 2091. Taking into account 65 years left we approximated the compensation to the freeholder for the lease extension to be between £18,100 and £20,800 exclusive of fees.