Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will ordinarily be granted for a fixed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Crowthorne. Clearly, the length of lease remaining shortens as time goes by. This may slip by relatively unnoticed when the flat or house has to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Eligible long lease owners in Crowthorne have the right to extend the lease for an additional 90 years under the 1993 Leasehold Reform Act. You should give due deliberation before putting off your Crowthorne lease extension. Holding off the cost now likely increases the price you will eventually have to pay for a lease extension
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as 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. |
| 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. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a freeholder in Crowthorne,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Crowthorne valuers.
John was the the leasehold owner of a conversion apartment in Crowthorne being marketed with a lease of fraction over 72 years outstanding. John on an informal basis spoke with his freeholder being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were John to exercise his statutory right. John procured expert legal guidance and secured an acceptable deal without going to tribunal and sell the flat.
Mr and Mrs. K López owned a purpose-built flat in Crowthorne in March 2001. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Similar flats in Crowthorne with an extended lease were valued about £255,000. The mid-range ground rent payable was £50 billed quarterly. The lease terminated on 12 May 2095. Having 70 years as a residual term we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of expenses.
In 2011 we were contacted by Mr C King who, having completed a basement apartment in Crowthorne in August 2010. The dilemma was if we could approximate the premium could be for a 90 year lease extension. Comparative properties in Crowthorne with a long lease were in the region of £246,800. The mid-range amount of ground rent was £60 collected monthly. The lease terminated in 2075. Having 50 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £44,700 and £51,600 plus professional charges.