Crabtree leases on residential properties are gradually losing value. Where your lease has about ninety years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for the lease extension to be in place before the term of the existing lease drops below 80 years - otherwise a higher amount will be payable. Leasehold owners in Crabtree will usually be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to check if you qualify. In some circumstances you may not be entitled. There are also strict timetables and formalities to follow once the process is initiated so it’s wise to be guided by a conveyancer during the process.
Leasehold residencies in Crabtree with over 100 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 reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Mortgage term plus 25 years provided that leases of less than 85 years are be referred to us for approval. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaing from the start of the mortgage. |
Regardless of whether you are a tenant or a landlord in Crabtree,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Crabtree valuers.
Following lengthy discussions with the landlord of her garden apartment in Crabtree, Laura commenced the lease extension process as the 80 year mark was fast advancing. The transaction was finalised in February 2005. The landlord’s fees were negotiated to about 500 GBP.
Ms Madeleine Mercier bought a one bedroom apartment in Crabtree in January 2009. We are asked if we could approximate the premium could be for a 90 year lease extension. Similar properties in Crabtree with an extended lease were valued about £174,200. The average amount of ground rent was £55 billed monthly. The lease came to a finish in 2072. Taking into account 51 years as a residual term we calculated the premium to the landlord to extend the lease to be between £31,400 and £36,200 exclusive of fees.
In 2011 we were e-mailed by Ms Daisy Roberts who, having took over the lease of a studio flat in Crabtree in July 2000. The question was if we could shed any light on how much (roughly) price would likely be to prolong the lease by ninety years. Comparative flats in Crabtree with 100 year plus lease were worth £285,000. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease ended on 21 November 2092. Having 71 years left we approximated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of professional charges.