As the the remaining lease term of a East Grinstead residential lease diminished so does its value and therefore the value of your property. Where the residual term has, in excess of 100 years remaining then this decrease may be fractional that being said there will become a stage when a lease has less than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main reason why you should extend the lease without delay. The majority of flat owners in East Grinstead will qualify for this right; nevertheless a conveyancing solicitor can confirm if you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold residencies in East Grinstead with in excess of 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in East Grinstead can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring East Grinstead lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Sam was the the leasehold proprietor of a 2 bedroom flat in East Grinstead being sold with a lease of just over 61 years remaining. Sam informally approached his freeholder a well known London-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 subject to a rise in the rent to £125 per annum. Ordinarily, ground rent would not be due on a lease extension were Sam to invoke his statutory right. Sam procured expert legal guidance and was able to make an informed decision and handle with the matter and readily saleable.
Dr D James completed a ground floor apartment in East Grinstead in October 2000. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Comparable residencies in East Grinstead with an extended lease were worth £275,000. The average amount of ground rent was £55 collected annually. The lease concluded in 2101. Taking into account 76 years outstanding we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of fees.
Mr and Mrs. O Cox moved into a first floor apartment in East Grinstead in October 1998. The dilemma was if we could estimate the price could be for a ninety year lease extension. Comparative homes in East Grinstead with an extended lease were in the region of £176,200. The average amount of ground rent was £65 billed annually. The lease lapsed on 25 May 2081. Considering the 56 years left we calculated the compensation to the landlord for the lease extension to be within £29,500 and £34,000 exclusive of legals.