Owning a flat usually means owning a lease of the property, which has a set term of years. This lease will normally be granted for a fixed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Crowle. Inevitably, the length of lease remaining shortens as time goes by. This may slip by relatively unnoticed when the residence needs to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Eligible long lease owners in Crowle have the legal entitlement to extend the lease for a further 90 years under legislation. Please give careful consideration before delaying your Crowle lease extension. Putting off that expense now only increases the price you will ultimately incur for a lease extension
It is generally considered that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with undertake Crowle lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Two years ago Austin, started to get close to the eighty-year mark with the lease on his basement apartment in Crowle. Having purchased his home 18 years previously, the unexpired term was of minimal bearing. As luck would have it, he realised he needed to take action soon on Extending the lease. Austin arranged for a lease extension just under the wire in July. Austin and the freeholder subsequently agreed on sum of £6,000 . If the lease had slid lower than 80 years, the sum would have become more costly by at least £1,125.
Last Christmas we were approach by Ms K Edwards , who owned a purpose-built flat in Crowle in September 2002. The question was if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparable flats in Crowle with a long lease were worth £210,600. The average ground rent payable was £45 invoiced every twelve months. The lease finished on 13 October 2088. Considering the 62 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £18,100 and £20,800 not including legals.
Last year we were contacted by Dr Dexter Cox , who was assigned a lease of a purpose-built apartment in Crowle in July 2004. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Comparative properties in Crowle with 100 year plus lease were valued about £265,000. The mid-range amount of ground rent was £50 collected per annum. The lease lapsed in 2099. Considering the 73 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus professional charges.