With a domestic leasehold premises in Crewe, you are actually purchasing a right to reside in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are less than 80 years left. Leasehold owners in Crewe with a lease approaching 81 years left should seriously think of extending it sooner rather than later. When a lease has fewer than 80 years remaining, under the current Act the landlord can calculate and charge a larger premium, based on a technical computation, 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 situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Crewe,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Crewe valuers.
Following unsuccessful negotiations with the freeholder of her purpose-built flat in Crewe, Georgina started the lease extension process as the eighty year deadline was swiftly advancing. The lease extension completed in January 2006. The freeholder’s costs were kept to an absolute minimum.
Mrs H Hall owned a garden flat in Crewe in April 2004. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Comparable residencies in Crewe with 100 year plus lease were in the region of £285,000. The mid-range ground rent payable was £45 collected per annum. The lease terminated on 3 August 2097. Having 71 years unexpired we calculated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including legals.
In 2011 we were e-mailed by Ms Megan Pérez who, having was assigned a lease of a first floor flat in Crewe in August 2001. We are asked if we could approximate the price could be for a 90 year extension to my lease. Comparative premises in Crewe with an extended lease were in the region of £225,800. The average amount of ground rent was £60 invoiced yearly. The lease end date was in 2086. Given that there were 60 years remaining we estimated the premium to the landlord for the lease extension to be within £23,800 and £27,400 exclusive of legals.