Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will normally be granted for a fixed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Crowle. Clearly, the term of lease left shortens as time goes by. This may pass by relatively unnoticed when the flat or house needs to be disposed of or refinanced. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Eligible leaseholders in Crowle have the right to extend the lease for an additional ninety years under Leasehold Reform legislation. Do give careful deliberation before putting off your Crowle lease extension. Putting off the cost now simply increases the price you will ultimately have to pay to extend your lease
Leasehold properties in Crowle with in excess of 100 years unexpired 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 circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 Crowle can be a difficult process. We recommend you procure 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.
Off the back of lengthy negotiations with the freeholder of her one bedroom apartment in Crowle, Niamh started the lease extension process as the eighty year threshold was swiftly nearing. The transaction completed in June 2015. The freeholder’s charges were restricted to less than 450 GBP.
Ms M Morris purchased a recently refurbished flat in Crowle in May 2005. The dilemma was if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Similar residencies in Crowle with 100 year plus lease were worth £285,000. The mid-range ground rent payable was £55 billed yearly. The lease expiry date was in 2104. Considering the 79 years unexpired we calculated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 not including costs.
In 2014 we were phoned by Mr Henry González who, having took over the lease of a basement flat in Crowle in July 1996. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by 90 years. Comparable homes in Crowle with a long lease were worth £193,400. The average amount of ground rent was £65 collected yearly. The lease elapsed on 10 June 2084. Taking into account 59 years left we calculated the premium to the freeholder to extend the lease to be within £21,900 and £25,200 not including expenses.