Crewe leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Crewe residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Crewe you should see if your lease has between 70 and ninety years left. There are good reasons why a Crewe leaseholder with a lease having around eighty years unexpired should take steps to ensure that a lease extension is put in place without delay
It is generally considered that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you increased control over the value of your Crewe leasehold, as your property will be more valuable and saleable in terms of lease length should you decide 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.
Last October Liam, started to get close to the 80-year mark with the lease on his basement apartment in Crewe. Having purchased his property two decades ago, the lease term was of little relevance. by good luck, it dawned on him that he would imminently be paying an escalated premium for Extending the lease. Liam was able to extend his lease just under the wire in January. Liam and the landlord who owned the flat above subsequently settled on sum of £5,000 . If the lease had descended lower than 80 years, the amount would have gone up by at least £1,100.
Last January we were contacted by Mr T Jackson , who acquired a one bedroom apartment in Crewe in January 1995. The question was if we could approximate the premium would be to prolong the lease by ninety years. Similar residencies in Crewe with 100 year plus lease were in the region of £206,200. The average amount of ground rent was £55 collected per annum. The lease lapsed in 2082. Having 56 years remaining we approximated the premium to the landlord for the lease extension to be between £31,400 and £36,200 exclusive of expenses.
In 2009 we were phoned by Mr and Mrs. K Michel who, having bought a one bedroom flat in Crewe in August 2004. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Identical flats in Crewe with a long lease were worth £300,000. The average ground rent payable was £50 billed every twelve months. The lease elapsed in 2102. Taking into account 76 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of expenses.