When it comes to domestic leasehold property in Crewe, you effectively rent it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially once there are fewer than 80 years remaining. Residents in Crewe with a lease nearing 81 years remaining should seriously consider extending it without delay. When the lease term has fewer than 80 years left, under the relevant Act the landlord can calculate and levy a greater amount, assessed on a technical calculation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety 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 | 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Chelsea 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Engaging our service will provide you enhanced control over the value of your Crewe leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of protracted correspondence with the landlord of her purpose-built apartment in Crewe, Danielle started the lease extension process just as her lease was coming close to the all-important 80-year deadline. The transaction was finalised in February 2005. The freeholder’s charges were kept to an absolute minimum.
Dr Laura Lambert acquired a basement apartment in Crewe in September 1997. We are asked if we could approximate the premium could be to prolong the lease by a further 90 years. Comparable properties in Crewe with an extended lease were worth £257,800. The average ground rent payable was £65 invoiced yearly. The lease elapsed on 23 February 2090. Having 65 years left we estimated the compensation to the landlord to extend the lease to be between £18,100 and £20,800 not including fees.
Mr and Mrs. B Morgan took over the lease of a one bedroom apartment in Crewe in June 2000. We are asked if we could approximate the price would be to prolong the lease by 90 years. Comparable properties in Crewe with a long lease were in the region of £191,400. The average amount of ground rent was £55 collected every twelve months. The lease elapsed in 2079. Having 54 years unexpired we estimated the compensation to the landlord for the lease extension to be between £34,200 and £39,600 not including costs.