With a residential leasehold premises in Crewe, you are actually buying an entitlement to live in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are fewer than 80 years remaining. Residents in Crewe with a lease drawing near to 81 years unexpired should seriously think of extending it as soon as possible. When a lease has under 80 years left, under the relevant statute the freeholder is entitled to calculate and charge a greater premium, based on a technical computation, strangely termed as “marriage value” which is due.
Leasehold properties in Crewe with in excess of 100 years outstanding 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 property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Godiva Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Crewe,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Crewe valuers.
Gabriel owned a 2 bedroom flat in Crewe on the market with a lease of a little over sixty years outstanding. Gabriel informally approached his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Gabriel to invoke his statutory right. Gabriel procured expert legal guidance and was able to make a more informed decision and deal with the matter and readily saleable.
In 2010 we were contacted by Mr K Howard who, having moved into a purpose-built apartment in Crewe in July 2005. We are asked if we could estimate the price would likely be to prolong the lease by ninety years. Identical homes in Crewe with 100 year plus lease were valued around £210,000. The average ground rent payable was £50 collected per annum. The lease expired on 18 August 2106. Taking into account 80 years unexpired we approximated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 not including professional charges.
Mr and Mrs. S Reed bought a purpose-built flat in Crewe in August 2000. We are asked if we could approximate the price would likely be to prolong the lease by a further 90 years. Comparable properties in Crewe with 100 year plus lease were worth £275,000. The average amount of ground rent was £45 billed per annum. The lease concluded in 2095. Taking into account 69 years as a residual term we calculated the premium to the landlord to extend the lease to be between £12,400 and £14,200 not including fees.