There is no doubt about it a leasehold flat or house in Crowle is a wasting asset as a result of the shortening lease. Where the lease has, beyond one hundred years to run then this decrease may be of little impact however there will become a point in time when a lease has under than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should consider extending without delay. Many flat owners in Crowle will qualify for this right; however a conveyancing solicitor will be able to confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Crowle with over 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with procure 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 conveyancer we work with provide it.
Ali was the the leasehold proprietor of a high value flat in Crowle on the market with a lease of a little over fifty eight years unexpired. Ali informally spoke with his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Ali to invoke his statutory right. Ali obtained expert advice and was able to make a more informed decision and deal with the matter and sell the flat.
In 2010 we were phoned by Dr K David who, having bought a studio apartment in Crowle in March 2012. The dilemma was if we could estimate the price would likely be to prolong the lease by ninety years. Identical homes in Crowle with 100 year plus lease were worth £260,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease concluded on 7 February 2097. Having 72 years remaining we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including expenses.
Last Autumn we were called by Mr and Mrs. D Vincent , who took over the lease of a first floor apartment in Crowle in July 2010. The question was if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Comparative properties in Crowle with 100 year plus lease were worth £256,600. The average ground rent payable was £60 billed monthly. The lease came to a finish in 2077. Having 52 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £39,000 and £45,000 exclusive of professional charges.