With a long leasehold property in Crabtree, you are actually buying a right to reside in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are fewer than 80 years remaining. Leasehold owners in Crabtree with a lease nearing 81 years remaining should seriously consider extending it without delay. When a lease has under 80 years left, under the current statute the landlord can calculate and levy a larger amount, assessed on a technical calculation, known as “marriage value” which is payable.
It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
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.
Subsequent to protracted negotiations with the freeholder of her studio apartment in Crabtree, Kirsty started the lease extension process as the 80 year threshold was quickly approaching. The legal work was concluded in August 2012. The freeholder’s charges were negotiated to a tad over four hundred pounds.
Mr and Mrs. W King took over the lease of a ground floor flat in Crabtree in January 2004. The question was if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Comparable flats in Crabtree with a long lease were worth £295,000. The average amount of ground rent was £50 invoiced every twelve months. The lease terminated on 14 March 2101. Given that there were 75 years left we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 plus expenses.
Last Christmas we were called by Dr Elijah Peterson , who moved into a purpose-built flat in Crabtree in July 2001. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Identical properties in Crabtree with an extended lease were valued about £250,400. The average amount of ground rent was £65 billed per annum. The lease ran out on 15 July 2090. Having 64 years left we approximated the compensation to the landlord for the lease extension to be between £19,000 and £22,000 not including professional charges.