As the the remaining lease term of a Grange Park domestic lease lessens so does its value and therefore the value of your property. Where the residual term has, in excess of 100 years to run then this decrease may be negligible however there will become a stage when a lease has fewer than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should extend the lease without delay. Most flat owners in Grange Park will meet the qualifying criteria; however a conveyancer will be able to advise if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Chelsea Building Society | |
| Godiva Mortgages | |
| TSB | |
| Virgin |
The lawyers that we work with handle 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 lawyer we work with provide it.
During the course of the last few months Alexander, started to get close to the 80-year threshold with the lease on his garden apartment in Grange Park. In buying his home 19 years previously, the lease term was of little concern. Thankfully, he noticed he needed to take steps soon on Extending the lease. Alexander was able to extend his lease just under the wire in May. Alexander and the landlord who owned the flat above ultimately settled on an amount of £5,500 . If he had missed the deadline, the amount would have escalated by at least £875.
Last month we were called by Mr and Mrs. M Bernard , who bought a studio apartment in Grange Park in May 2009. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Comparable homes in Grange Park with an extended lease were worth £265,000. The average amount of ground rent was £50 collected yearly. The lease ended on 13 February 2100. Taking into account 74 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of costs.
An example of a Lease Extension case 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 was in relation to 1 flat. The remaining number of years on the lease was 81.79 years.