The market value of Croxley Green leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate significantly once the remaining term is less than 80 years
Leasehold properties in Croxley Green with more than one hundred years left 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 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Croxley Green,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Croxley Green valuers.
Last October Riley, came seriously close to the 80-year mark with the lease on his two bedroom apartment in Croxley Green. In buying his property twenty years ago, the lease term was of no bearing. Fortunately, it dawned on him that he would soon be paying an escalated premium for a lease extension. Riley arranged for a lease extension at the eleventh hour in September. Riley and the landlord who owned the flat above ultimately agreed on a premium of £5,500 . If he not met the deadline, the figure would have increased by a minimum £1,000.
Last Autumn we were phoned by Mr and Mrs. H Pérez , who acquired a one bedroom apartment in Croxley Green in July 2001. We are asked if we could approximate the price would likely be for a ninety year lease extension. Similar premises in Croxley Green with a long lease were valued around £280,000. The average amount of ground rent was £45 billed every twelve months. The lease expiry date was in 2094. Having 69 years left we estimated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 not including costs.
An example of a Lease Extension matter before the tribunal for a Croxley Green property is Flats 8, 11 and 15 Craigmore Court 46 Murray Road in December 2013. The tribunal held that the price payable by the Applicant tenant of Flat 8 to acquire an extended lease shall be £26,438 plus £1 to the intermediate lessee . The tribunal held that the price payable by the Applicant tenants of Flat 11 to acquire an extended lease shall be £26,791 plus £1 to the intermediate lessee. The tribunal held that the price payable by the Applicant tenant of Flat 15 to acquire an extended lease shall be £26,638 plus £1 to the intermediate lessee . This case affected 3 flats. The unexpired residue of the current lease was 71 years.