Crowthorne leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Crowthorne tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Crowthorne you must see if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the cost of any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
It is generally considered that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Crowthorne,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Crowthorne valuers.
Trailing unsuccessful correspondence with the freeholder of her two bedroom apartment in Crowthorne, Isabelle initiated the lease extension process just as the lease was coming close to the crucial eighty-year threshold. The legal work was finalised in May 2013. The freeholder’s fees were kept to an absolute minimum.
In 2010 we were contacted by Mr and Mrs. M Roberts who, having purchased a purpose-built apartment in Crowthorne in November 2012. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by a further 90 years. Similar flats in Crowthorne with 100 year plus lease were valued about £270,000. The mid-range amount of ground rent was £55 invoiced monthly. The lease concluded on 28 April 2099. Considering the 74 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including costs.
Mr K Stewart owned a purpose-built apartment in Crowthorne in January 1997. The question was if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Identical residencies in Crowthorne with an extended lease were valued around £166,400. The mid-range ground rent payable was £60 invoiced annually. The lease ended on 10 April 2079. Having 54 years as a residual term we approximated the premium to the landlord to extend the lease to be within £32,300 and £37,400 exclusive of expenses.