For those whose Crabtree property is held on a long lease, our message is clear – if nothing is done, the property will ultimately revert to the freeholder, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more it will cost to obtain a lease extension.
It is generally considered that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in Crabtree can be a difficult process. We recommend you procure guidance from a lawyer and valuer 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.
Trailing unsuccessful discussions with the landlord of her basement apartment in Crabtree, Danielle initiated the lease extension process as the eighty year threshold was fast approaching. The legal work was concluded in May 2013. The freeholder’s costs were restricted to about 450 pounds.
In 2009 we were approached by Dr Courtney Parker who, having purchased a purpose-built flat in Crabtree in July 2000. The dilemma was if we could estimate the price would be to prolong the lease by 90 years. Identical properties in Crabtree with a long lease were in the region of £206,200. The average ground rent payable was £55 collected monthly. The lease ran out in 2082. Given that there were 56 years outstanding we estimated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 exclusive of professional charges.
In 2011 we were approached by Mr and Mrs. W Robinson who, having moved into a ground floor flat in Crabtree in March 1999. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Identical flats in Crabtree with 100 year plus lease were valued around £300,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease terminated in 2102. Considering the 76 years remaining we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of professional charges.