Top reasons for Crowle lease extension

Top reasons for lease extension now:

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

Unfortunately that a Crowle residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Crowle property prices.Once your lease nears 85ish years, you need to 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 dips under 80 years - otherwise a higher premium will be payable. Most leasehold owners in Crowle will be able to extend under the legislation; however a lawyer will be able to confirm if you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your lawyer for the duration of the formalities.

An extended lease is almost the same value as a freehold

Leasehold premises in Crowle with more than 100 years outstanding 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 home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.

Lenders will not finance a property on a short lease

Lenders are tightening their criteria and many now want flats to have at least 60 if not 70 years left once the mortgage has expired. Considering a number of flats in Crowle were built in the 1950s, 1960s and 1970s this means many now need to be extended if they wish to obtain a mortgage.

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

Lease extensions in Crowle can be a difficult process. We recommend you procure professional help from a conveyancing solicitor 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 a wealth of experience 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.

Crowle Lease Extension Case Summaries:

Rosie, Crowle, Lincolnshire,

After protracted negotiations with the freeholder of her basement flat in Crowle, Rosie commenced the lease extension process just as her lease was approaching the critical 80-year threshold. The lease extension completed in May 2010. The freeholder’s costs were kept to an absolute minimum.

Crowle case:

Last Christmas we were contacted by Mr and Mrs. R Flores , who took over the lease of a basement flat in Crowle in May 2011. The question was if we could estimate the premium could be to extend the lease by a further 90 years. Comparative properties in Crowle with 100 year plus lease were in the region of £250,000. The mid-range amount of ground rent was £50 collected yearly. The lease termination date was on 20 February 2095. Given that there were 69 years left we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of expenses.

Crowle case:

Mr and Mrs. W Morgan was assigned a lease of a first floor flat in Crowle in March 2008. We are asked if we could estimate the price could be for a ninety year extension to my lease. Comparable properties in Crowle with a long lease were valued about £285,000. The average ground rent payable was £55 billed quarterly. The lease finished on 17 January 2106. Having 80 years unexpired we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 not including fees.