When it comes to domestic leasehold premises in Grays, you are in fact renting it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are fewer than 80 years left. Anyone in Grays with a lease approaching 81 years remaining should seriously think of extending it without delay. Once a lease has below 80 years remaining, under the relevant Act the freeholder can calculate and charge a larger amount, assessed on a technical computation, strangely termed as “marriage value” which is payable.
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you enhanced control over the value of your Grays leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Max was the the leasehold owner of a 2 bedroom apartment in Grays on the market with a lease of fraction over 72 years remaining. Max on an informal basis contacted his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 yearly. Ordinarily, ground rent would not be due on a lease extension were Max to invoke his statutory right. Max procured expert advice and secured an acceptable resolution without going to tribunal and ending up with a market value flat.
Dr A Khan purchased a garden flat in Grays in February 2007. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by 90 years. Comparable premises in Grays with 100 year plus lease were in the region of £265,000. The average amount of ground rent was £50 collected every twelve months. The lease finished in 2097. Having 73 years outstanding we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus professional charges.
An example of a Lease Extension matter before the tribunal for a Grays premises is Various @ Colombus Square in January 2012. the Tribunal calculated the premiums to be paid for new leases for each of the flats in Mariners Walk to be £3822 and the premium to be paid for the new lease of 2 Knights Court to be £4439. This case was in relation to 13 flats. The remaining number of years on the lease was 76 years.