Crosby leases on residential properties are gradually losing value. if your lease has about ninety years unexpired, you should start thinking about a lease extension. If lease term falls under 80 years, you will then have to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Crosby will mostly qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to check if you qualify. In some situations you may not be entitled. There are prescribed deadlines and procedures to comply with once the process is initiated so it’s sensible to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, 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. |
| Chelsea 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a landlord in Crosby,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Crosby valuers.
Ben owned a studio apartment in Crosby on the market with a lease of just over 72 years outstanding. Ben informally contacted his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £200 annually. No ground rent would be payable on a lease extension were Ben to exercise his statutory right. Ben procured expert advice and secured satisfactory resolution informally and ending up with a market value flat.
Last Winter we were e-mailed by Mr and Mrs. N Ramírez , who acquired a one bedroom flat in Crosby in January 2010. The question was if we could shed any light on how much (approximately) price would be to prolong the lease by 90 years. Comparative residencies in Crosby with a long lease were valued around £216,000. The average ground rent payable was £60 invoiced per annum. The lease elapsed on 5 May 2083. Taking into account 58 years left we approximated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of legals.
Dr Emily Girard bought a one bedroom apartment in Crosby in January 2012. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Comparable flats in Crosby with 100 year plus lease were worth £205,000. The mid-range ground rent payable was £50 billed annually. The lease lapsed in 2103. Having 78 years outstanding we approximated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 plus fees.