When it comes to domestic leasehold premises in Crowle, you are in fact renting it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater particularly when there are fewer than 80 years left. Anyone in Crowle with a lease approaching 81 years unexpired should seriously think of extending it as soon as possible. Once a lease has fewer than eighty years outstanding, under the relevant Act the landlord can calculate and demand a larger amount, assessed on a technical multiplication, known as “marriage value” which is due.
Leasehold premises in Crowle with in excess of 100 years unexpired on the lease are often 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 upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Using our service will provide you increased control over the value of your Crowle leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Seth was the the leasehold proprietor of a conversion apartment in Crowle on the market with a lease of a few days over 72 years left. Seth informally approached his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were Seth to invoke his statutory right. Seth procured expert advice and was able to make a more informed decision and handle with the matter and sell the property.
Dr D Scott took over the lease of a ground floor flat in Crowle in February 1995. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by a further 90 years. Comparative properties in Crowle with a long lease were valued around £265,000. The mid-range amount of ground rent was £50 billed monthly. The lease expired on 21 January 2100. Having 74 years left we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including expenses.
Last Spring we were approach by Mr and Mrs. C Thompson , who purchased a ground floor apartment in Crowle in February 2002. The question was if we could estimate the premium would likely be to extend the lease by an additional years. Comparative homes in Crowle with an extended lease were valued around £166,400. The average ground rent payable was £60 invoiced every twelve months. The lease end date was on 7 November 2080. Taking into account 54 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £32,300 and £37,400 plus costs.