Grahame Park residential property held on a long lease is a depreciating asset because a leaseholder merely owns the property for a set term.
Leasehold residencies in Grahame Park with more than 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| 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. |
| Halifax | Minimum 70 years from the date 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. |
Regardless of whether you are a tenant or a landlord in Grahame Park,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Grahame Park valuers.
Following unsuccessful negotiations with the freeholder of her basement apartment in Grahame Park, Samantha initiated the lease extension process as the 80 year mark was fast coming. The transaction was finalised in January 2012. The landlord’s costs were kept to an absolute minimum.
Dr W Peterson moved into a garden apartment in Grahame Park in July 1996. The question was if we could estimate the compensation to the landlord could be to extend the lease by an additional years. Comparative premises in Grahame Park with a long lease were worth £255,000. The mid-range ground rent payable was £50 billed per annum. The lease came to a finish in 2097. Taking into account 71 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus legals.
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 was in relation to 2 flats. The unexpired term as at the valuation date was 71.5 years.