The market value of a leasehold property in Crabtree is impacted by how many years the lease has left to run. If it is near to or less than 80 years you should expect problems on re-sale, so it is recommended to arrange for the lease to be extended before buying. It is ideal to start the process of extending the lease is when the lease still has 82 years unexpired so that all matters can be concluded in advance of the eighty year mark. Current legislation entitles Crabtree qualifying lessees to obtain a new lease which will be for the balance of the existing lease plus a supplemental term of ninety years. The purpose of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally considered that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Godiva Mortgages | |
| Skipton Building Society | |
| TSB |
Lease extensions in Crabtree can be a difficult process. We recommend you secure professional help from a lawyer and valuer well versed in the legislation and lease extension process.
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.
Ollie owned a 2 bedroom flat in Crabtree being marketed with a lease of fraction over 59 years outstanding. Ollie on an informal basis contacted his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Ollie to exercise his statutory right. Ollie procured expert legal guidance and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
Mrs Emma Thompson purchased a purpose-built flat in Crabtree in March 2004. The dilemma was if we could shed any light on how much (roughly) premium could be to extend the lease by 90 years. Identical premises in Crabtree with a long lease were worth £300,000. The average ground rent payable was £50 billed yearly. The lease ended in 2102. Given that there were 76 years remaining we approximated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of costs.
Last Christmas we were approach by Dr Yasmin Pérez , who took over the lease of a studio apartment in Crabtree in January 2007. We are asked if we could shed any light on how much (roughly) price would likely be for a ninety year lease extension. Comparable residencies in Crabtree with an extended lease were in the region of £257,800. The average ground rent payable was £65 collected every twelve months. The lease finished on 25 May 2091. Taking into account 65 years left we estimated the premium to the landlord to extend the lease to be between £18,100 and £20,800 exclusive of costs.