Crewe leases on domestic properties are gradually losing value. Where your lease has approximately 90 years left, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for a lease extension to take place before the term of the existing lease falls lower than eighty years - otherwise a higher premium will be due. Leasehold owners in Crewe will usually be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process is initiated so it’s wise to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Birmingham Midshires | |
| National Westminster Bank | |
| Nationwide Building Society | |
| Santander |
The conveyancing solicitors that we work with undertake Crewe lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Last year Harry, started to get close to the eighty-year mark with the lease on his studio flat in Crewe. Having purchased his flat two decades ago, the unexpired term was of no concern. by good luck, it dawned on him that he would soon be paying way over the odds for Extending the lease. Harry arranged for a lease extension just under the wire in May. Harry and the freeholder via the managing agents eventually agreed on an amount of £5,000 . If the lease had dropped lower than eighty years, the figure would have increased by at least £925.
Last Christmas we were phoned by Dr Mollie Bernard , who took over the lease of a newly refurbished apartment in Crewe in July 1998. We are asked if we could estimate the premium would likely be for a ninety year extension to my lease. Comparative premises in Crewe with 100 year plus lease were valued about £208,600. The average ground rent payable was £60 billed quarterly. The lease terminated in 2083. Given that there were 57 years unexpired we calculated the premium to the landlord to extend the lease to be within £30,400 and £35,200 not including fees.
Dr S Nelson moved into a purpose-built flat in Crewe in June 2011. The question was if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year extension to my lease. Comparative properties in Crewe with a long lease were worth £200,000. The average ground rent payable was £50 collected monthly. The lease elapsed in 2103. Taking into account 77 years as a residual term we calculated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of professional charges.