Grahame Park leases on domestic deteriorating in value. if your lease has approximately 90 years unexpired, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for the lease extension to be in place before the term of the existing lease dips lower than 80 years - otherwise a higher amount will be payable. Leasehold owners in Grahame Park will mostly be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to check your eligibility. In some cases you may not be entitled. There are also strict timetables and formalities to comply with once the process is initiated so it’s wise to be guided by a conveyancer during the process.
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| Birmingham Midshires | 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 be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with procure 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.
Rory owned a studio apartment in Grahame Park being sold with a lease of a few days over fifty eight years left. Rory informally spoke with his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £100 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Rory to exercise his statutory right. Rory obtained expert legal guidance and was able to make an informed decision and deal with the matter and sell the flat.
In 2014 we were approached by Mrs W Leroy who, having took over the lease of a first floor apartment in Grahame Park in August 1995. We are asked if we could approximate the price could be to prolong the lease by ninety years. Comparable properties in Grahame Park with 100 year plus lease were valued around £285,000. The mid-range ground rent payable was £55 billed per annum. The lease expiry date was on 24 February 2105. Taking into account 79 years left we calculated the premium to the landlord for the lease extension to be between £13,300 and £15,400 plus expenses.
An example of a Freehold Enfranchisement matter before the tribunal 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 affected 2 flats. The unexpired lease term was 71.5 years.