There is no doubt about it a leasehold flat or house in Crowland is a wasting asset as a result of the shortening lease. Where the residual term has, over 125 years remaining then this decrease may be negligible however there will become a point in time when a lease has under than eighty 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 logic behind why you should consider extending sooner rather than later. Most flat owners in Crowland will qualify for this right; nevertheless a conveyancing solicitor can advise whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
Lease extensions in Crowland can be a difficult process. We recommend you get professional help from a lawyer and valuer with experience in lease extensions.
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.
Half a year ago Harvey, started to get near to the eighty-year mark with the lease on his garden flat in Crowland. Having purchased his home twenty years previously, the lease term was of minimal importance. Luckily, it dawned on him that he would soon be paying an escalated premium for Extending the lease. Harvey extended the lease just in the nick of time last April. Harvey and the landlord who owned the flat above eventually agreed on sum of £5,000 . If he failed to meet the deadline, the premium would have escalated by a minimum £1,025.
Dr Tyler Petit took over the lease of a first floor apartment in Crowland in July 2007. The dilemma was if we could shed any light on how much (roughly) price could be to prolong the lease by an additional years. Identical premises in Crowland with a long lease were worth £191,400. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease expiry date was in 2079. Taking into account 54 years remaining we estimated the premium to the freeholder to extend the lease to be between £34,200 and £39,600 exclusive of expenses.
Last Spring we were phoned by Dr Harrison Petit , who purchased a one bedroom flat in Crowland in September 2011. We are asked if we could shed any light on how much (approximately) premium could be for a ninety year extension to my lease. Similar flats in Crowland with a long lease were valued around £295,000. The average amount of ground rent was £45 collected yearly. The lease concluded on 21 August 2099. Considering the 74 years outstanding we calculated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 not including expenses.