Grange Over Sands leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Grange Over Sands residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Grange Over Sands you must check if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the residence 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Grange Over Sands can be a difficult process. We recommend you procure professional help from a lawyer and valuer 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 in-depth market knowledge dealing with Grange Over Sands lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Leo, came precariously close to the 80-year threshold with the lease on his ground floor apartment in Grange Over Sands. Having purchased his home two decades ago, the lease term was of no concern. As luck would have it, it dawned on him that he would imminently be paying an escalated premium for a lease extension. Leo arranged for a lease extension at the eleventh hour last April. Leo and the landlord eventually agreed on sum of £5,500 . If he failed to meet the deadline, the amount would have become more exhorbitant by at least £875.
Last Christmas we were called by Mr and Mrs. M Davies , who took over the lease of a basement apartment in Grange Over Sands in August 2007. The dilemma was if we could approximate the price could be to prolong the lease by an additional years. Similar premises in Grange Over Sands with 100 year plus lease were worth £235,200. The mid-range amount of ground rent was £45 billed per annum. The lease elapsed in 2092. Having 66 years as a residual term we estimated the premium to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of professional charges.
Last May we were phoned by Ms Chelsea Jones , who moved into a recently refurbished apartment in Grange Over Sands in January 1998. We are asked if we could estimate the price would be for a ninety year lease extension. Comparable properties in Grange Over Sands with a long lease were worth £275,000. The average ground rent payable was £55 invoiced every twelve months. The lease lapsed on 7 June 2103. Considering the 77 years left we calculated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 not including costs.