The re-sale value of a leasehold property in Crowthorne depends on how long the lease has remaining. If it is close to or less than 80 years you should foresee difficulties on re-sale, so it is recommended to arrange for the lease to be extended before purchasing. It is ideal to start the lease extension process when the lease still has 82 years unexpired so that all matters can be concluded prior to the 80 year threshold. Leasehold Reform legislation enables Crowthorne qualifying lessees to an additional term of ninety years on top of the remaining term, at a peppercorn rent (no ground rent). The purpose of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Crowthorne with more than 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | 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. |
Lease extensions in Crowthorne can be a difficult process. We recommend you get guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Crowthorne lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Hunter owned a conversion flat in Crowthorne on the market with a lease of fraction over 61 years remaining. Hunter informally contacted his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 annually. No ground rent would be payable on a lease extension were Hunter to exercise his statutory right. Hunter obtained expert legal guidance and secured satisfactory resolution informally and ending up with a market value flat.
In 2010 we were e-mailed by Dr Oliver Martínez who, having purchased a studio flat in Crowthorne in March 2011. The question was if we could approximate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparative residencies in Crowthorne with an extended lease were worth £173,800. The mid-range amount of ground rent was £65 collected per annum. The lease concluded on 13 October 2080. Taking into account 55 years unexpired we approximated the premium to the landlord for the lease extension to be within £31,400 and £36,200 exclusive of legals.
In 2010 we were phoned by Mr and Mrs. F Morel who, having moved into a basement apartment in Crowthorne in July 1995. The question was if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Comparative residencies in Crowthorne with a long lease were in the region of £235,200. The mid-range amount of ground rent was £45 collected annually. The lease terminated on 15 August 2091. Given that there were 66 years outstanding we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus legals.