With a residential leasehold premises in Crowthorne, you are in fact renting it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are fewer than eighty years left. Anyone in Crowthorne with a lease nearing 81 years unexpired should seriously think of extending it without delay. Once a lease has less than 80 years outstanding, under the current Act the landlord is entitled to calculate and levy a larger amount, assessed on a technical calculation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you increased control over the value of your Crowthorne leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Dexter was the the leasehold proprietor of a 2 bedroom apartment in Crowthorne being marketed with a lease of a little over 59 years outstanding. Dexter on an informal basis spoke with his landlord a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Dexter to invoke his statutory right. Dexter procured expert legal guidance and was able to make an informed decision and handle with the matter and ending up with a market value flat.
Mr and Mrs. I Howard acquired a recently refurbished flat in Crowthorne in January 1996. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Similar properties in Crowthorne with 100 year plus lease were in the region of £235,200. The mid-range ground rent payable was £45 billed yearly. The lease lapsed on 9 May 2091. Having 66 years left we calculated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 plus costs.
In 2009 we were e-mailed by Dr Samuel Roux who, having moved into a one bedroom apartment in Crowthorne in January 2004. The question was if we could shed any light on how much (roughly) premium would likely be to extend the lease by ninety years. Comparable premises in Crowthorne with a long lease were valued about £280,000. The average ground rent payable was £55 collected yearly. The lease ended on 25 July 2102. Having 77 years as a residual term we approximated the premium to the landlord to extend the lease to be within £13,300 and £15,400 not including costs.