Crowle leases on residential deteriorating in value. Where your lease has in the region of ninety years unexpired, you should start considering the need for a lease extension. If lease term dips under 80 years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Crowle will mostly qualify for a lease extension; however It would be wise to check with a conveyancer to confirm if you qualify. In certain cases you may not qualify. There are also strict deadlines and procedures to follow once the process has started so it’s best to be guided by a conveyancer during the process.
It is conventional wisdom that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with handle 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.
In recent months Freddie, started to get near to the 80-year mark with the lease on his leasehold apartment in Crowle. In buying his home two decades ago, the lease term was of no interest. Fortunately, he noticed he would soon be paying an escalated premium for Extending the lease. Freddie was able to extend his lease just ahead of time last June. Freddie and the freeholder eventually settled on sum of £5,500 . If the lease had fallen below 80 years, the amount would have gone up by a minimum £1,100.
In 2010 we were e-mailed by Mrs S Mason who, having owned a purpose-built flat in Crowle in May 2012. We are asked if we could approximate the premium could be for a ninety year lease extension. Comparative flats in Crowle with 100 year plus lease were valued around £166,400. The mid-range amount of ground rent was £60 invoiced per annum. The lease expired in 2080. Considering the 54 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £32,300 and £37,400 not including professional charges.
Last July we were phoned by Ms Kirsty Bailey , who purchased a newly refurbished flat in Crowle in January 2011. The dilemma was if we could estimate the price would be to prolong the lease by a further 90 years. Identical properties in Crowle with an extended lease were worth £227,800. The mid-range ground rent payable was £45 collected annually. The lease elapsed on 27 June 2091. Taking into account 65 years remaining we estimated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of legals.