With a long leasehold property in Crewe, you are actually purchasing an entitlement to reside in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should 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 notably when there are fewer than 80 years remaining. Leasehold owners in Crewe with a lease drawing near to 81 years unexpired should seriously think of extending it without delay. When a lease has under 80 years outstanding, under the relevant legislation the landlord can calculate and charge a greater premium, assessed on a technical multiplication, known as “marriage value” which is payable.
Leasehold premises in Crewe with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Regardless of whether you are a tenant or a freeholder 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.
Jonathan owned a high value flat in Crewe being marketed with a lease of a little over 61 years remaining. Jonathan on an informal basis contacted his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £200 yearly. Ordinarily, ground rent would not be payable on a lease extension were Jonathan to invoke his statutory right. Jonathan procured expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the property.
Mr Caleb Rogers moved into a basement apartment in Crewe in October 2009. We are asked if we could estimate the price would be for a 90 year extension to my lease. Comparative flats in Crewe with 100 year plus lease were worth £171,800. The average amount of ground rent was £55 billed annually. The lease elapsed on 26 January 2076. Considering the 50 years remaining we calculated the compensation to the landlord for the lease extension to be within £33,300 and £38,400 plus legals.
Last Autumn we were e-mailed by Mr F Cooper , who completed a garden apartment in Crewe in February 2006. The dilemma was if we could estimate the compensation to the landlord would be for a ninety year lease extension. Comparable flats in Crewe with 100 year plus lease were valued about £280,000. The average ground rent payable was £45 collected every twelve months. The lease ended on 7 June 2096. Given that there were 70 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 plus costs.