As the length of the unexpired term of a Crewe residential lease lessens so does its value and therefore the value of your property. If the lease has, over one hundred years remaining then this decrease may be negligible nevertheless there will become a stage when a lease has less than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should extend the lease without delay. Many flat owners in Crewe will qualify for this right; nevertheless a conveyancer should be able to advise whether you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with over 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Using our service will provide you better control over the value of your Crewe leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Joshua, started to get close to the eighty-year threshold with the lease on his one bedroom apartment in Crewe. In buying his home 19 years ago, the length of the lease was of minimal importance. Luckily, he noticed he needed to take action soon on a lease extension. Joshua was able to extend his lease just ahead of time last May. Joshua and the landlord subsequently agreed on a premium of £6,000 . If the lease had slid to less than eighty years, the figure would have gone up by at least £875.
In 2014 we were approached by Mrs Elizabeth Young who, having acquired a recently refurbished apartment in Crewe in February 2007. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Comparative properties in Crewe with 100 year plus lease were worth £275,000. The average ground rent payable was £65 invoiced yearly. The lease expired in 2094. Considering the 68 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including legals.
Last Spring we were e-mailed by Mrs G Torres , who completed a purpose-built apartment in Crewe in January 2002. The dilemma was if we could approximate the premium would be for a 90 year lease extension. Comparative homes in Crewe with 100 year plus lease were valued about £208,600. The mid-range ground rent payable was £60 billed annually. The lease ran out in 2083. Given that there were 57 years unexpired we estimated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 plus fees.