Why you should commence your Crabtree lease extension

Top reasons for lease extension now:

A Crabtree leasehold property depreciates with the years remaining on the lease.

Crabtree leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Most owners of residential leasehold property in Crabtree enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Crabtree you must investigate if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value

Crabtree property with a lease extension has roughly the same value as a freehold

Leasehold residencies in Crabtree with over 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.

Lending institutions may not grant a mortgage on a short lease

Most mortgage lenders will not grant a mortgage on a lease with less than seventy years remaining - although this varies from lender to lender. A buyer will undoubtedly encounter difficulties in obtaining a mortgage and this will result in your Crabtree property being difficult to dispose of or refinance.

What makes us experts in Crabtree lease extensions?

The conveyancers that we work with handle Crabtree lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.

Crabtree Lease Extension Example Cases:

Bethany, Crabtree, Devon,

After unsuccessful negotiations with the landlord of her two bedroom flat in Crabtree, Bethany commenced the lease extension process just as her lease was coming close to the critical 80-year mark. The legal work completed in November 2014. The freeholder’s charges were restricted to under 650 pounds.

Crabtree case:

Last Spring we were approach by Mr O Díaz , who completed a garden apartment in Crabtree in July 2012. We are asked if we could shed any light on how much (approximately) price would likely be to prolong the lease by a further 90 years. Identical homes in Crabtree with 100 year plus lease were worth £275,000. The average amount of ground rent was £65 collected quarterly. The lease terminated in 2094. Given that there were 68 years left we calculated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 not including costs.

Crabtree case:

In 2010 we were called by Mr Ryan Taylor who, having purchased a one bedroom apartment in Crabtree in April 1997. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Identical homes in Crabtree with a long lease were worth £208,600. The mid-range amount of ground rent was £60 collected quarterly. The lease terminated on 11 August 2083. Considering the 57 years unexpired we calculated the premium to the landlord for the lease extension to be between £30,400 and £35,200 exclusive of legals.