East Grinstead leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. The majority of owners of residential leasehold property in East Grinstead enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in East Grinstead you really ought to see if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years left, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in East Grinstead can be a difficult process. We recommend you obtain professional help from a lawyer and valuer 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 a wealth of experience dealing with 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.
Subsequent to protracted negotiations with the freeholder of her garden apartment in East Grinstead, Robyn started the lease extension process as the eighty year mark was quickly coming. The transaction completed in March 2006. The freeholder’s fees were restricted to a tad over 450 pounds.
Last Winter we were e-mailed by Mr and Mrs. S Martinez , who was assigned a lease of a purpose-built apartment in East Grinstead in March 2002. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year extension to my lease. Similar premises in East Grinstead with a long lease were worth £256,600. The average amount of ground rent was £60 invoiced annually. The lease ran out in 2078. Considering the 52 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £41,800 and £48,400 exclusive of legals.
Mr and Mrs. C Simon bought a basement apartment in East Grinstead in March 2002. The question was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by ninety years. Identical premises in East Grinstead with 100 year plus lease were worth £218,000. The mid-range ground rent payable was £45 invoiced quarterly. The lease ended in 2089. Considering the 63 years left we approximated the compensation to the freeholder to extend the lease to be within £17,100 and £19,800 exclusive of expenses.