Unfortunately that a Crabtree residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Crabtree property market.Once your lease gets to 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below 80 years - otherwise a higher premium will be due. Most leasehold owners in Crabtree will be able to extend under the legislation; however a lawyer will be able to clarify whether you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
It is generally accepted that a property with over 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
The conveyancing solicitors 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.
In 2014 Aarav, started to get near to the 80-year threshold with the lease on his leasehold apartment in Crabtree. In buying his home 19 years previously, the length of the lease was of minimal bearing. Fortunately, he realised he needed to take steps soon on Extending the lease. Aarav arranged for a lease extension just in the nick of time in September. Aarav and the freeholder ultimately agreed on the final figure of £6,000 . If he failed to meet the deadline, the price would have become more costly by a minimum £1,025.
In 2014 we were called by Mr and Mrs. L Ward who, having owned a basement flat in Crabtree in January 2000. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Comparable residencies in Crabtree with an extended lease were in the region of £257,800. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease terminated in 2090. Having 65 years left we calculated the compensation to the landlord for the lease extension to be between £18,100 and £20,800 not including fees.
Mr and Mrs. B Laurent completed a first floor flat in Crabtree in November 1995. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Comparative residencies in Crabtree with 100 year plus lease were worth £191,400. The mid-range amount of ground rent was £55 collected yearly. The lease expired on 27 March 2079. Taking into account 54 years outstanding we approximated the premium to the landlord to extend the lease to be between £34,200 and £39,600 not including expenses.