As the the remaining lease term of a Crowthorne residential lease decreases so does its value and therefore the value of your property. Where the residual term has, beyond one hundred years remaining then this decrease may be negligible nevertheless there will become a point in time when a lease has under than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main logic behind why you should extend the lease sooner rather than later. Most flat owners in Crowthorne will qualify for this right; however a conveyancer should be able to advise whether you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold properties in Crowthorne with in excess of one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with procure Crowthorne lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
After unsuccessful negotiations with the landlord of her basement apartment in Crowthorne, Erin commenced the lease extension process as the 80 year deadline was fast coming. The transaction was finalised in September 2012. The landlord’s costs were kept to an absolute minimum.
Dr Kai Green was assigned a lease of a garden flat in Crowthorne in February 2005. The dilemma was if we could estimate the price could be to extend the lease by a further 90 years. Similar properties in Crowthorne with 100 year plus lease were valued about £232,800. The mid-range amount of ground rent was £45 collected every twelve months. The lease came to a finish in 2089. Given that there were 65 years left we approximated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of legals.
Dr Muhammad Brown completed a first floor apartment in Crowthorne in August 2001. The question was if we could estimate the premium could be to prolong the lease by a further 90 years. Comparable premises in Crowthorne with an extended lease were valued around £275,000. The average amount of ground rent was £55 billed yearly. The lease terminated in 2100. Given that there were 76 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus fees.