Unfortunately that a Crewe residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Crewe property market.Where your lease has approximately 90 years left, you should start thinking about a lease extension. If the number of years remaining dips under 80 years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most leasehold owners in Crewe will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer for the duration of the formalities.
Leasehold premises in Crewe with over 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| 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. |
| 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:
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The lawyers that we work with handle 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 conveyancing solicitor we work with provide it.
Two years ago Kian, came very close to the eighty-year threshold with the lease on his one bedroom flat in Crewe. Having purchased his home two decades ago, the length of the lease was of little relevance. As luck would have it, he became aware that he needed to take steps soon on a lease extension. Kian arranged for a lease extension just ahead of time in June. Kian and the landlord ultimately settled on the final figure of £6,000 . If the lease had descended to less than 80 years, the price would have escalated by a minimum £875.
Last March we were phoned by Mr and Mrs. T Clark , who moved into a purpose-built apartment in Crewe in July 2001. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparative residencies in Crewe with a long lease were in the region of £191,400. The mid-range ground rent payable was £55 invoiced per annum. The lease terminated on 4 September 2080. Considering the 54 years outstanding we calculated the premium to the landlord for the lease extension to be within £34,200 and £39,600 plus professional charges.
In 2012 we were e-mailed by Dr J Ali who, having purchased a newly refurbished flat in Crewe in February 2012. The dilemma was if we could estimate the premium could be to extend the lease by an additional years. Similar premises in Crewe with a long lease were valued about £295,000. The average ground rent payable was £45 collected annually. The lease concluded in 2100. Considering the 74 years remaining we estimated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of costs.