There is no doubt about it a leasehold property in Grahame Park is a wasting asset as a result of the diminishing lease term. Where the lease has, more than 99 years to run then this decrease may be fractional nevertheless there will become a point in time when a lease has less than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should extend the lease sooner than later. Many flat owners in Grahame Park will qualify for this right; that being said a conveyancer will be able to confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
| 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. |
The conveyancing solicitors that we work with handle Grahame Park lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
After unsuccessful correspondence with the freeholder of her ground floor apartment in Grahame Park, Samantha commenced the lease extension process just as the lease was approaching the all-important 80-year deadline. The transaction completed in April 2009. The freeholder’s charges were kept to an absolute minimum.
In 2013 we were approached by Ms Lucy Bailey who, having completed a first floor flat in Grahame Park in November 1996. We are asked if we could approximate the price could be for a ninety year lease extension. Comparable properties in Grahame Park with 100 year plus lease were in the region of £183,600. The average amount of ground rent was £65 collected yearly. The lease finished in 2082. Taking into account 57 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 not including fees.
An example of a Freehold Enfranchisement decision for a Grahame Park premises 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 remaining number of years on the lease was 71.5 years.