Grahame Park 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 the lease becomes more expensive. Legislation has been in place for sometime now which permits qualifying Grahame Park residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Grahame Park you must investigate if your lease has between seventy and 90 years left. There are good reasons why a Grahame Park flat owner with a lease having around 80 years unexpired should take action to make sure that a lease extension is actioned without delay
Leasehold residencies in Grahame Park with over one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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; |
| 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. |
| 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. |
The conveyancers that we work with undertake Grahame Park 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 conveyancer we work with provide it.
14 months ago Hugo, started to get close to the eighty-year mark with the lease on his studio flat in Grahame Park. In buying his flat two decades ago, the unexpired term was of little interest. by good luck, he noticed he would soon be paying way over the odds for a lease extension. Hugo was able to extend his lease at the eleventh hour last August. Hugo and the freeholder ultimately agreed on an amount of £6,000 . If he not met the deadline, the sum would have increased by a minimum £1,050.
In 2014 we were e-mailed by Dr Robyn King who, having bought a garden flat in Grahame Park in April 2012. The question was if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Comparable properties in Grahame Park with 100 year plus lease were valued around £210,600. The mid-range ground rent payable was £45 billed yearly. The lease concluded on 14 August 2087. Given that there were 62 years left we approximated the premium to the landlord to extend the lease to be within £18,100 and £20,800 not including fees.
An example of a Freehold Enfranchisement matter before the tribunal for a Grahame Park premises is 1 & 1A Sunningfields Crescent in September 2013. The Tribunals calculation of the amount to be paid into court in respect of the value of the freehold interest is £11,997 in respect of Flat 1 and £15,781 in respect of Flat 1A for a total of £27,778. This case was in relation to 2 flats. The unexpired term as at the valuation date was 71.5 years.