Unfortunately that a Crystal Palace 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 first few years due to the deflation being disguised by increases in the Crystal Palace property prices.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If the number of years remaining slips below eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Crystal Palace will be able to extend under the legislation; however a lawyer should be able to clarify if you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor throughout the process.
It is generally accepted that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Using our service will provide you better control over the value of your Crystal Palace leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Arthur, started to get close to the eighty-year threshold with the lease on his purpose- built flat in Crystal Palace. Having purchased his property two decades ago, the unexpired term was of minimal interest. Fortunately, he realised he would imminently be paying an inflated amount for Extending the lease. Arthur arranged for a lease extension at the eleventh hour in June. Arthur and the freeholder via the management company in the end agreed on a premium of £5,000 . If the lease had slid lower than 80 years, the figure would have increased by a minimum £925.
Last September we were e-mailed by Mr and Mrs. S Baker , who acquired a basement flat in Crystal Palace in June 2004. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Comparable residencies in Crystal Palace with a long lease were in the region of £225,800. The average amount of ground rent was £60 collected per annum. The lease end date was on 15 February 2086. Given that there were 60 years outstanding we approximated the premium to the freeholder for the lease extension to be between £23,800 and £27,400 not including fees.
An example of a Lease Extension case for a Crystal Palace residence is Flat 1 4 Border Crescent in March 2012. the Tribunal decided that the sum payable by the Applicants to the Respondent in respect of the new lease for the subject property should be £11,616.00 (ElevenThousand and Six Hundred and Sixteen Pounds) This case related to 1 flat. The unexpired residue of the current lease was 72.04 years.