It’s a harsh certainty that a Crystal Palace residential lease is a wasting asset. As the lease term reduces 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 market.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. If lease term falls under 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. The marriage fee is the amount of additional value that a lease extension will add the property The majority of flat owners in Crystal Palace will be able to extend under the legislation; however a conveyancer will be able to clarify whether you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer from beginning to end of the process.
It is conventional wisdom that a property with in excess of 100 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 property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Crystal Palace,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Crystal Palace valuers.
Half a year ago Toby, came critically close to the eighty-year mark with the lease on his garden apartment in Crystal Palace. In buying his property 19 years previously, the unexpired term was of no importance. Luckily, he recognised he needed to take action soon on a lease extension. Toby arranged for a lease extension just in the nick of time last May. Toby and the freeholder via the management company in the end settled on sum of £5,000 . If he failed to meet the deadline, the amount would have become more costly by a minimum £1,025.
In 2013 we were called by Dr T Mason who, having was assigned a lease of a newly refurbished flat in Crystal Palace in January 2004. We are asked if we could approximate the compensation to the landlord would be for a ninety year lease extension. Identical premises in Crystal Palace with an extended lease were worth £250,400. The mid-range amount of ground rent was £65 billed quarterly. The lease termination date was in 2090. Taking into account 64 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £19,000 and £22,000 not including expenses.
An example of a Lease Extension decision for a Crystal Palace flat 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 term was 72.04 years.