Crowthorne leases on domestic properties are gradually losing value. Where your lease has about ninety years unexpired, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for your lease extension to be in place before the term of the existing lease falls under 80 years - otherwise a higher premium will be due. Leasehold owners in Crowthorne will usually qualify for a lease extension; however It would be wise to check with a lawyer to confirm if you qualify. In some circumstances you may not qualify. There are prescribed timetables and procedures to comply with once the process is triggered so it’s sensible to be guided by a lawyer during the process.
Leasehold properties in Crowthorne with more than one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| 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. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Using our service will provide you increased control over the value of your Crowthorne leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Omar, started to get near to the eighty-year threshold with the lease on his first floor apartment in Crowthorne. Having purchased his flat 18 years ago, the length of the lease was of no bearing. Thankfully, he became aware that he needed to take action soon on a lease extension. Omar was able to extend his lease at the eleventh hour in August. Omar and the landlord ultimately settled on sum of £5,500 . If he failed to meet the deadline, the figure would have gone up by at least £875.
In 2012 we were called by Ms P Anderson who, having completed a studio flat in Crowthorne in July 2006. The dilemma was if we could estimate the premium would likely be for a 90 year extension to my lease. Comparative properties in Crowthorne with 100 year plus lease were worth £275,000. The mid-range ground rent payable was £55 billed per annum. The lease expired on 21 September 2102. Considering the 76 years unexpired we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including legals.
Ms Imogen Thompson was assigned a lease of a basement flat in Crowthorne in August 2007. We are asked if we could estimate the price would be to extend the lease by a further 90 years. Comparative properties in Crowthorne with a long lease were worth £176,200. The mid-range amount of ground rent was £65 collected yearly. The lease ran out on 28 July 2082. Given that there were 56 years left we estimated the premium to the freeholder to extend the lease to be within £29,500 and £34,000 plus professional charges.