Crewe leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Most owners of residential leasehold property in Crewe enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Crewe you really ought to see if your lease has between 70 and ninety years left. There are compelling reasons why a Crewe leaseholder with a lease having around eighty years left should take action to ensure that a lease extension is effected without delay
Leasehold residencies in Crewe with more than one hundred years left 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 premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit 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. |
| Coventry Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
Using our service will provide you enhanced control over the value of your Crewe leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Rory owned a studio apartment in Crewe being sold with a lease of fraction over 61 years unexpired. Rory informally approached his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £200 yearly. Ordinarily, ground rent would not be payable on a lease extension were Rory to invoke his statutory right. Rory procured expert advice and secured satisfactory deal without resorting to tribunal and readily saleable.
Last Winter we were e-mailed by Mr and Mrs. E Dupont , who completed a ground floor flat in Crewe in October 1995. We are asked if we could approximate the premium could be to prolong the lease by a further 90 years. Identical premises in Crewe with 100 year plus lease were worth £174,200. The mid-range ground rent payable was £55 collected every twelve months. The lease termination date was on 24 June 2076. Having 51 years outstanding we estimated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 plus costs.
In 2012 we were called by Mr M Evans who, having was assigned a lease of a ground floor apartment in Crewe in September 2010. We are asked if we could estimate the compensation to the landlord could be to extend the lease by a further 90 years. Comparative homes in Crewe with an extended lease were worth £285,000. The mid-range ground rent payable was £45 collected quarterly. The lease concluded in 2096. Having 71 years as a residual term we estimated the premium to the landlord to extend the lease to be within £12,400 and £14,200 plus legals.