It’s an underpublicised truth that a Crewe residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Crewe property prices.Where your lease has approximately 90 years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under 80 years - otherwise a higher amount will be due. Most leasehold owners in Crewe will be able to extend under the legislation; however a lawyer will be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer throughout the process.
Leasehold residencies in Crewe with in excess of 100 years unexpired 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 home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Lease extensions in Crewe can be a difficult process. We recommend you get professional help from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Crewe lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 6 months of unsuccessful negotiations with the freeholder of her one bedroom flat in Crewe, Hollie commenced the lease extension process as the eighty year threshold was swiftly approaching. The legal work completed in May 2012. The landlord’s charges were kept to an absolute minimum.
Dr G Leroy moved into a basement apartment in Crewe in August 2007. We are asked if we could estimate the price could be to prolong the lease by a further 90 years. Comparable flats in Crewe with a long lease were in the region of £267,600. The average ground rent payable was £65 invoiced every twelve months. The lease lapsed on 25 May 2092. Given that there were 67 years left we estimated the premium to the freeholder to extend the lease to be within £14,300 and £16,400 exclusive of fees.
Last Christmas we were e-mailed by Mr Felix Carter , who bought a ground floor flat in Crewe in June 1995. The question was if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Comparable premises in Crewe with an extended lease were in the region of £206,200. The mid-range ground rent payable was £55 billed monthly. The lease concluded in 2081. Given that there were 56 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 exclusive of costs.