The rule of thumb is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Crabtree may extend the lease for a further ninety years under legislation. Do give careful consideration before delaying your Crabtree lease extension. Postponing that expense today simply increases the price you will eventually have to pay to extend the lease.
Leasehold residencies in Crabtree with over 100 years left on the lease are sometimes regarded as a ‘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 upside in buying the reversionary interest unless savings on ground rent and service 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; |
| Leeds Building Society | 85 years remaining from the start 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Crabtree can be a difficult process. We recommend you get guidance from a conveyancing solicitor and surveyor with experience in lease extensions.
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 a wealth of experience 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.
Following protracted discussions with the freeholder of her leasehold apartment in Crabtree, Bethany started the lease extension process as the eighty year threshold was swiftly approaching. The transaction was concluded in May 2011. The freeholder’s fees were negotiated to slightly above 500 GBP.
In 2010 we were contacted by Mr Jackson Dupont who, having completed a purpose-built apartment in Crabtree in April 2001. The dilemma was if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Identical homes in Crabtree with a long lease were valued around £275,000. The average amount of ground rent was £45 collected per annum. The lease came to a finish on 6 June 2095. Given that there were 69 years outstanding we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including expenses.
In 2013 we were e-mailed by Mr and Mrs. U Peterson who, having acquired a one bedroom apartment in Crabtree in February 2003. The dilemma was if we could approximate the price would likely be to prolong the lease by an additional years. Comparative homes in Crabtree with 100 year plus lease were in the region of £216,000. The mid-range amount of ground rent was £60 collected annually. The lease expired in 2084. Taking into account 58 years unexpired we calculated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 plus professional charges.