The value of Crabtree leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate substantially once the unexpired lease term is less than 80 years
Leasehold properties in Crabtree with more than 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Crabtree can be a difficult process. We recommend you procure professional help from a lawyer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Crabtree lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Callum was the the leasehold proprietor of a high value flat in Crabtree being marketed with a lease of fraction over 72 years remaining. Callum on an informal basis contacted his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Callum to invoke his statutory right. Callum obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Mr A Moore acquired a first floor flat in Crabtree in June 2010. The question was if we could approximate the price would be to extend the lease by an additional years. Comparative properties in Crabtree with a long lease were worth £208,600. The average ground rent payable was £60 billed yearly. The lease elapsed in 2083. Considering the 57 years unexpired we calculated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 plus costs.
Dr Jayden Alexander was assigned a lease of a basement flat in Crabtree in October 2005. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Identical residencies in Crabtree with a long lease were worth £200,000. The mid-range ground rent payable was £50 collected annually. The lease lapsed on 27 February 2103. Taking into account 77 years outstanding we calculated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of legals.