The only way is down when it comes to Crabtree lease terms. Crabtree flats that have a lease term shorter than 80 years will drop in value even faster, and the cost to extend your lease will go up.
Leasehold residencies in Crabtree with over 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| 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. |
Engaging our service will provide you better control over the value of your Crabtree leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jasper was the the leasehold owner of a studio flat in Crabtree being marketed with a lease of a little over fifty eight years remaining. Jasper on an informal basis approached his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Jasper to exercise his statutory right. Jasper procured expert legal guidance and was able to make an informed decision and deal with the matter and sell the flat.
Last year we were called by Mr and Mrs. W Dupont , who moved into a basement apartment in Crabtree in July 2010. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by a further 90 years. Similar homes in Crabtree with an extended lease were worth £275,000. The average amount of ground rent was £45 invoiced quarterly. The lease expiry date was on 6 November 2093. Having 69 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 plus expenses.
Last Christmas we were phoned by Mr M Moreau , who moved into a one bedroom apartment in Crabtree in October 1997. The dilemma was if we could approximate the premium could be to extend the lease by 90 years. Comparable residencies in Crabtree with 100 year plus lease were valued about £216,000. The average ground rent payable was £60 invoiced every twelve months. The lease finished in 2082. Considering the 58 years unexpired we approximated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 plus professional charges.