Grange Over Sands leases on residential deteriorating in value. if your lease has approximately ninety years left, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease drops below this level then you begin paying an additional element called marriage value. Flat owners in Grange Over Sands will usually qualify for a lease extension; however it’s a good idea to check with a conveyancer to confirm your eligibility. In some situations you may not qualify. There are prescribed timetables and formalities to follow once the process has commenced so it’s best to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Grange Over Sands can be a difficult process. We recommend you get guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Grange Over Sands lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Harvey was the the leasehold proprietor of a conversion flat in Grange Over Sands being sold with a lease of a little over fifty eight years left. Harvey informally approached his landlord being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Harvey to invoke his statutory right. Harvey obtained expert advice and was able to make a more informed judgement and deal with the matter and sell the property.
Dr Alexandra Lefèvre purchased a ground floor apartment in Grange Over Sands in January 2006. We are asked if we could estimate the premium could be to prolong the lease by ninety years. Identical homes in Grange Over Sands with an extended lease were in the region of £200,800. The average amount of ground rent was £65 billed quarterly. The lease terminated in 2085. Considering the 60 years remaining we estimated the premium to the landlord for the lease extension to be within £20,900 and £24,200 plus expenses.
Last Winter we were e-mailed by Mr and Mrs. I Nelson , who purchased a ground floor apartment in Grange Over Sands in May 2001. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by ninety years. Similar homes in Grange Over Sands with 100 year plus lease were in the region of £255,000. The average amount of ground rent was £50 collected monthly. The lease ended in 2096. Having 71 years unexpired we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including legals.