Top reasons for Crowle lease extension

Main reasons to commence your Crowle lease extension today:

Increase your lease and increase your Crowle property value

The market value of a leasehold property in Crowle is impacted by how long the lease has remaining. If it is close to or less than eighty years you should foresee problems on re-sale, so it is advisable to arrange for a lease extension prior to purchasing. It is preferable to commence the lease extension process when a lease still has 82 years unexpired so that a lease extension can be addressed well before the eighty year threshold. Leasehold Reform legislation entitles Crowle qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus a further term of ninety years. The purpose of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.

Crowle property with a lease extension is almost the same value as a freehold

It is generally accepted that a property with more than 100 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 worth the same as a freehold for many years in the future.

Lenders will not lend with a short lease

Most banks have constrained their lending criteria in the last ten years and borrowers are finding it increasingly difficult to raise funding or re-mortgage against property with shorter lease terms, particularly below seventy years as they are deemed to be deficient for lending purposes.

Get in touch with one of our Crowle lease extension solicitors or enfranchisement solicitors

The conveyancing solicitors 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 conveyancer we work with provide it.

Crowle Lease Extension Example Cases:

Dylan, Crowle, Lincolnshire

Two years ago Dylan, came very close to the eighty-year threshold with the lease on his first floor flat in Crowle. Having purchased his flat 19 years ago, the length of the lease was of minimal importance. Fortunately, he recognised he would imminently be paying an inflated amount for a lease extension. Dylan extended the lease just under the wire in April. Dylan and the freeholder via the management company eventually agreed on a premium of £5,000 . If the lease had gone below 80 years, the premium would have increased by a minimum £875.

Crowle case:

Ms Amelia Simon took over the lease of a one bedroom flat in Crowle in September 2007. We are asked if we could approximate the price would be for a 90 year extension to my lease. Comparative homes in Crowle with a long lease were worth £246,800. The mid-range amount of ground rent was £60 invoiced per annum. The lease terminated in 2076. Considering the 50 years outstanding we calculated the premium to the freeholder for the lease extension to be within £44,700 and £51,600 exclusive of professional charges.

Crowle case:

Mr and Mrs. P Bonnet completed a one bedroom flat in Crowle in October 2006. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Identical properties in Crowle with 100 year plus lease were in the region of £203,200. The average amount of ground rent was £65 invoiced per annum. The lease terminated in 2087. Given that there were 61 years remaining we approximated the premium to the landlord for the lease extension to be between £19,000 and £22,000 not including professional charges.