As the the remaining lease term of a Grange Park residential lease diminished so does its value and therefore the value of your property. If the residual term has, in excess of 125 years remaining then this decrease may be fractional nevertheless there will become a point in time when a lease has under than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should extend the lease sooner as opposed to later. Most flat owners in Grange Park will qualify for this right; nevertheless a lawyer should be able to advise whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Grange Park with over one hundred years unexpired on the lease are often referred to as ‘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 to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 increased control over the value of your Grange Park leasehold, as your property will be more valuable and marketable in relation to the 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.
In the wake of 9 months of unsuccessful correspondence with the freeholder of her garden apartment in Grange Park, Louise started the lease extension process just as her lease was approaching the critical eighty-year mark. The transaction completed in September 2015. The landlord’s charges were kept to an absolute minimum.
In 2014 we were phoned by Dr O Mason who, having moved into a purpose-built flat in Grange Park in September 1999. The question was if we could shed any light on how much (roughly) premium could be to extend the lease by 90 years. Comparable premises in Grange Park with 100 year plus lease were in the region of £193,400. The mid-range ground rent payable was £65 billed monthly. The lease ended in 2085. Given that there were 59 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 plus legals.
An example of a Lease Extension case for a Grange Park property 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 affected 1 flat. The number of years remaining on the existing lease(s) was 81.79 years.