There is no doubt about it a leasehold flat or house in Grappenhall is a wasting asset as a result of the diminishing lease term. Where the residual term has, more than 125 years to run then this decrease may be of little impact however there will become a point in time when a lease has under than 80 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 main rational as to why you should extend the lease without delay. Many flat owners in Grappenhall will meet the qualifying criteria; however a conveyancer can advise if you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold premises in Grappenhall with in excess of one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
Retaining our service will provide you enhanced control over the value of your Grappenhall leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months John, came critically near to the eighty-year threshold with the lease on his studio flat in Grappenhall. Having purchased his flat two decades ago, the unexpired term was of no concern. by good luck, he became aware that he would imminently be paying way over the odds for a lease extension. John was able to extend his lease at the eleventh hour in July. John and the landlord who owned the flat above subsequently agreed on the final figure of £5,000 . If the lease had slipped to less than 80 years, the amount would have gone up by at least £975.
Last Christmas we were e-mailed by Dr E Fournier , who moved into a studio flat in Grappenhall in September 1997. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Similar homes in Grappenhall with an extended lease were in the region of £264,000. The average amount of ground rent was £60 invoiced annually. The lease elapsed on 15 February 2078. Having 53 years unexpired we calculated the premium to the landlord for the lease extension to be between £37,100 and £42,800 not including fees.
Last Spring we were e-mailed by Mr and Mrs. M Bennett , who was assigned a lease of a one bedroom flat in Grappenhall in June 1995. 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 a further 90 years. Comparable properties in Grappenhall with a long lease were in the region of £225,400. The mid-range amount of ground rent was £45 invoiced yearly. The lease came to a finish in 2089. Having 64 years left we calculated the premium to the freeholder to extend the lease to be between £15,200 and £17,600 exclusive of professional charges.