The re-sale value of a leasehold property in Grahame Park is impacted by how long the lease has remaining. If it is close to or less than eighty years you should anticipate difficulties on re-sale, so it is recommended to arrange for the lease to be extended ahead of purchasing. It is preferable to commence the process of extending the lease is when the lease still has 82 years remaining so that all matters can be finalised ahead of the 80 year mark. Current legislation enables Grahame Park qualifying lessees to an additional term of ninety years in addition to the existing term, at a notional rent (zero ground rent). The intention of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally considered that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| Coventry Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Lease extensions in Grahame Park can be a difficult process. We recommend you secure professional help from a lawyer 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 Grahame Park lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Theo was the the leasehold owner of a studio flat in Grahame Park being marketed with a lease of a few days over 61 years unexpired. Theo on an informal basis approached his landlord a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Theo to invoke his statutory right. Theo procured expert advice and was able to make an informed judgement and handle with the matter and sell the property.
Mr and Mrs. T Hernández acquired a one bedroom flat in Grahame Park in August 2005. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Comparable homes in Grahame Park with 100 year plus lease were valued about £186,000. The average ground rent payable was £65 collected annually. The lease finished in 2083. Taking into account 58 years outstanding we calculated the premium to the freeholder to extend the lease to be within £24,700 and £28,600 exclusive of costs.
An example of a Freehold Enfranchisement matter before the tribunal for a Grahame Park flat is 1 & 1A Sunningfields Crescent in September 2013. The Tribunals calculation of the amount to be paid into court in respect of the value of the freehold interest is £11,997 in respect of Flat 1 and £15,781 in respect of Flat 1A for a total of £27,778. This case related to 2 flats. The unexpired term was 71.5 years.