Unfortunately that a Crowthorne residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Crowthorne property prices.Once your lease gets to 85ish years, you should start considering a lease extension. If the number of years remaining dips below eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of flat owners in Crowthorne will be able to extend under the legislation; however a lawyer should be able to confirm if you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your lawyer throughout the formalities.
Leasehold premises in Crowthorne with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 obtain guidance from a conveyancer and surveyor with experience in lease extensions.
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 in-depth market knowledge 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.
Arthur was the the leasehold proprietor of a studio flat in Crowthorne being marketed with a lease of a few days over 59 years left. Arthur informally approached his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Arthur to exercise his statutory right. Arthur procured expert legal guidance and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Mr and Mrs. F Parker moved into a one bedroom apartment in Crowthorne in April 2010. We are asked if we could approximate the premium would be for a 90 year extension to my lease. Comparative residencies in Crowthorne with an extended lease were valued around £250,000. The average ground rent payable was £50 collected quarterly. The lease finished on 15 November 2095. Taking into account 69 years unexpired we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.
In 2010 we were phoned by Mrs F Davies who, having purchased a ground floor apartment in Crowthorne in May 2003. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparative properties in Crowthorne with a long lease were worth £290,000. The mid-range amount of ground rent was £60 billed per annum. The lease concluded in 2106. Having 80 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 not including fees.