With a long leasehold property in Crabtree, you are in fact renting it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater notably when there are fewer than eighty years left. Anyone in Crabtree with a lease drawing near to 81 years remaining should seriously consider extending it as soon as possible. When the lease term has under eighty years left, under the current statute the freeholder can calculate and demand a greater premium, assessed on a technical computation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately 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 decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| Yorkshire Building Society | 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. |
Lease extensions in Crabtree can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and surveyor 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 a wealth of experience dealing with Crabtree lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jake was the the leasehold owner of a studio flat in Crabtree on the market with a lease of a little over 61 years remaining. Jake on an informal basis approached his freeholder being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £200 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Jake to exercise his statutory right. Jake procured expert advice and was able to make a more informed decision and handle with the matter and readily saleable.
In 2010 we were e-mailed by Mr and Mrs. P Taylor who, having bought a garden apartment in Crabtree in August 2009. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by ninety years. Comparative residencies in Crabtree with 100 year plus lease were in the region of £260,200. The mid-range amount of ground rent was £65 collected every twelve months. The lease expiry date was on 2 May 2091. Taking into account 66 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £16,200 and £18,600 exclusive of legals.
In 2009 we were phoned by Mrs Mollie Kelly who, having acquired a first floor apartment in Crabtree in June 2002. We are asked if we could estimate the price would likely be for a 90 year lease extension. Identical premises in Crabtree with an extended lease were worth £198,800. The mid-range amount of ground rent was £55 collected monthly. The lease lapsed in 2080. Considering the 55 years left we calculated the premium to the landlord for the lease extension to be within £33,300 and £38,400 not including professional charges.