There is no doubt about it a leasehold flat or house in Grange Park is a wasting asset as a result of the diminishing lease term. Where the residual term has, over one hundred years to run then this decrease may be negligible nevertheless there will become a point in time when a lease has fewer than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should extend the lease without delay. Many flat owners in Grange Park will qualify for this right; that being said a conveyancing solicitor should be able to confirm whether you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Grange Park with in excess of 100 years left 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 home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| 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 conveyancing solicitors that we work with undertake Grange 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 conveyancing solicitor we work with provide it.
Last year Ollie, came critically close to the eighty-year threshold with the lease on his purpose- built flat in Grange Park. Having purchased his property 19 years previously, the lease term was of no relevance. As luck would have it, it dawned on him that he would imminently be paying way over the odds for Extending the lease. Ollie extended the lease just in the nick of time in August. Ollie and the freeholder via the management company ultimately agreed on the final figure of £5,500 . If he failed to meet the deadline, the premium would have escalated by at least £975.
Mr and Mrs. W Bonnet owned a ground floor flat in Grange Park in June 2000. The question was if we could approximate the premium could be to prolong the lease by a further 90 years. Comparable residencies in Grange Park with 100 year plus lease were valued around £218,000. The mid-range ground rent payable was £45 collected yearly. The lease ran out on 12 January 2089. Considering the 63 years unexpired we approximated the compensation to the landlord to extend the lease to be between £17,100 and £19,800 plus costs.
An example of a Lease Extension matter before the tribunal for a Grange Park residence is First Floor Flat 109 Lyndhurst Road in May 2010. Following a vesting order by Edmonton County Court on 29th October 2009 the Tribunal decided on a figure of £5,012 for a lease extension. This case related to 1 flat. The unexpired lease term was 81.79 years.