For those whose Crowle flat is held on a long lease, our message is clear – if you do nothing, your property will ultimately revert to your landlord, leaving you empty-handed. The fewer the years remaining the less it is worth and the more it will cost to extend the lease.
It is generally considered that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years left, 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 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Lease extensions in Crowle can be a difficult process. We recommend you secure guidance from a conveyancer and surveyor 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 Crowle lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Michael owned a studio flat in Crowle on the market with a lease of a few days over sixty years unexpired. Michael on an informal basis contacted his landlord being 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 on the basis of a rise in the rent to £50 annually. Ordinarily, ground rent would not be due on a lease extension were Michael to exercise his statutory right. Michael obtained expert advice and was able to make a more informed judgement and deal with the matter and sell the flat.
Last year we were contacted by Mr Hunter González , who completed a basement flat in Crowle in January 1997. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Similar premises in Crowle with an extended lease were in the region of £200,800. The mid-range ground rent payable was £65 collected per annum. The lease ran out on 19 November 2085. Given that there were 60 years remaining we estimated the compensation to the freeholder to extend the lease to be within £20,900 and £24,200 exclusive of expenses.
Last Summer we were contacted by Mr Nathaniel Roux , who purchased a ground floor flat in Crowle in March 2012. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Similar residencies in Crowle with an extended lease were valued about £255,000. The average ground rent payable was £50 billed yearly. The lease ended in 2096. Given that there were 71 years outstanding we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of fees.