For those whose Grange Over Sands property is held on a long lease, the message is clear – if you ignore the situation, the property will ultimately revert to the freeholder, leaving you empty-handed. The shorter the lease the less it is worth and the more it will cost to extend the lease.
Leasehold residencies in Grange Over Sands with in excess of 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 Grange Over Sands,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Grange Over Sands valuers.
Hunter was the the leasehold proprietor of a 2 bedroom flat in Grange Over Sands on the market with a lease of just over sixty years remaining. Hunter informally contacted his landlord a well known Manchester-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 annually. Ordinarily, ground rent would not be payable on a lease extension were Hunter to exercise his statutory right. Hunter obtained expert advice and secured satisfactory resolution without going to tribunal and readily saleable.
In 2012 we were phoned by Mr and Mrs. K Baker who, having purchased a first floor flat in Grange Over Sands in June 1999. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by 90 years. Comparative homes in Grange Over Sands with 100 year plus lease were in the region of £260,000. The average ground rent payable was £50 invoiced quarterly. The lease ran out on 23 October 2098. Considering the 72 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including professional charges.
In 2012 we were phoned by Mr and Mrs. S Cox who, having purchased a recently refurbished apartment in Grange Over Sands in January 1996. We are asked if we could estimate the price would likely be to extend the lease by 90 years. Identical flats in Grange Over Sands with 100 year plus lease were in the region of £256,600. The mid-range amount of ground rent was £60 invoiced yearly. The lease concluded on 17 July 2078. Considering the 52 years unexpired we calculated the compensation to the landlord for the lease extension to be within £41,800 and £48,400 plus expenses.