The rule of thumb is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Crabtree can extend the lease for a further ninety years under legislation. Do give careful consideration before delaying your Crabtree lease extension. Putting off that expense today simply escalates the price you will eventually be required to pay to extend the lease.
Leasehold properties in Crabtree with over 100 years outstanding 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 property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| 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. |
| Godiva Mortgages | 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. |
| 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. |
Retaining our service gives you better control over the value of your Crabtree leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last year Riley, started to get close to the 80-year threshold with the lease on his basement apartment in Crabtree. In buying his home two decades ago, the length of the lease was of little interest. by good luck, he realised he needed to take steps soon on Extending the lease. Riley arranged for a lease extension at the eleventh hour in August. Riley and the landlord eventually agreed on a premium of £5,500 . If the lease had dipped to less than eighty years, the sum would have increased by at least £925.
Last Spring we were called by Mrs Ellen Hernández , who moved into a ground floor apartment in Crabtree in March 2005. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Identical properties in Crabtree with an extended lease were worth £205,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease terminated in 2104. Given that there were 79 years outstanding we approximated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 plus costs.
Mrs Naomi Parker completed a first floor flat in Crabtree in November 2003. The dilemma was if we could estimate the premium could be to prolong the lease by a further 90 years. Comparable properties in Crabtree with an extended lease were in the region of £275,000. The average amount of ground rent was £65 billed every twelve months. The lease lapsed in 2093. Having 68 years remaining we estimated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of legals.