Crewe leases on residential deteriorating in value. if your lease has approximately ninety years unexpired, you should start considering the need for a lease extension. If lease term dips under 80 years, you will then have to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Crewe will mostly be legally entitled to a lease extension; however a solicitor will check if you qualify. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process has commenced so it’s wise to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Barnsley Building Society | |
| Leeds Building Society | |
| Skipton Building Society |
Using our service gives you better control over the value of your Crewe leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jackson owned a studio apartment in Crewe on the market with a lease of a little over 72 years outstanding. Jackson informally approached his landlord being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jackson to exercise his statutory right. Jackson obtained expert legal guidance and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Dr L Sánchez bought a one bedroom flat in Crewe in April 1999. The dilemma was if we could approximate the price would likely be for a ninety year lease extension. Identical premises in Crewe with 100 year plus lease were valued about £233,200. The average amount of ground rent was £60 collected quarterly. The lease ended on 7 February 2087. Considering the 61 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £22,800 and £26,400 exclusive of costs.
Dr Rhiannon Leroy bought a ground floor flat in Crewe in June 1998. The question was if we could shed any light on how much (roughly) price could be to prolong the lease by ninety years. Similar residencies in Crewe with 100 year plus lease were in the region of £171,800. The average ground rent payable was £55 billed per annum. The lease lapsed in 2076. Considering the 50 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £33,300 and £38,400 plus expenses.