The closer a residential lease in Grahame Park gets to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, over one hundred years to run then this decrease may be of little impact nevertheless there will become a point in time when a lease has fewer than eighty years unexpired 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 logic behind why you should consider extending without delay. Most flat owners in Grahame Park will qualify for this right; that being said a conveyancing solicitor can advise whether you are eligible 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 properties in Grahame Park with over one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Lease extensions in Grahame Park can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and surveyor with experience in lease extensions.
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 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.
In recent months Muhammad, came precariously close to the 80-year threshold with the lease on his ground floor apartment in Grahame Park. In buying his home twenty years previously, the lease term was of no concern. Luckily, he became aware that he needed to take steps soon on a lease extension. Muhammad arranged for a lease extension just under the wire last January. Muhammad and the landlord ultimately settled on sum of £5,000 . If he failed to meet the deadline, the figure would have increased by at least £975.
Ms C Richardson moved into a ground floor flat in Grahame Park in April 1995. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by an additional years. Similar homes in Grahame Park with 100 year plus lease were valued around £250,000. The average ground rent payable was £50 collected annually. The lease end date was on 23 August 2094. Considering the 69 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including legals.
An example of a Freehold Enfranchisement case for a Grahame Park residence 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 lease term was 71.5 years.