Crabtree leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Crabtree tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Crabtree you must check if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| Leeds Building Society | |
| TSB | |
| Virgin |
The conveyancers that we work with handle Crabtree 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 lawyer we work with provide it.
Half a year ago Thomas, came critically close to the eighty-year mark with the lease on his basement apartment in Crabtree. Having bought his flat two decades ago, the length of the lease was of no concern. As luck would have it, he noticed he would imminently be paying an inflated amount for Extending the lease. Thomas arranged for a lease extension just in the nick of time in January. Thomas and the freeholder in the end agreed on a premium of £6,000 . If he had missed the deadline, the price would have become more costly by a minimum £900.
Last year we were phoned by Mr and Mrs. O Rivera , who moved into a recently refurbished flat in Crabtree in April 2003. The dilemma was if we could estimate the price would likely be to extend the lease by ninety years. Similar homes in Crabtree with a long lease were in the region of £210,000. The mid-range ground rent payable was £50 invoiced annually. The lease terminated on 13 November 2106. Given that there were 80 years left we calculated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 plus professional charges.
Dr O González owned a basement flat in Crabtree in September 1995. The question was if we could shed any light on how much (approximately) premium could be for a ninety year extension to my lease. Comparable homes in Crabtree with a long lease were worth £275,000. The mid-range ground rent payable was £45 collected quarterly. The lease lapsed on 23 September 2095. Taking into account 69 years unexpired we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including professional charges.