As the length of the unexpired term of a Grange Over Sands domestic lease diminished so does its value and therefore the value of your property. Where the residual term has, in excess of 100 years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has under than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main rational as to why you should consider extending sooner rather than later. The majority of flat owners in Grange Over Sands will meet the qualifying criteria; nevertheless a lawyer will be able to confirm if you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally accepted that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Grange Over Sands,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 Grange Over Sands valuers.
Half a year ago Tyler, came precariously near to the 80-year threshold with the lease on his two bedroom apartment in Grange Over Sands. In buying his property two decades ago, the unexpired term was of no bearing. Thankfully, he realised he needed to take action soon on Extending the lease. Tyler extended the lease just under the wire last March. Tyler and the landlord who owned the flat above subsequently settled on an amount of £5,500 . If he not met the deadline, the amount would have become more costly by at least £1,150.
Last January we were phoned by Mr and Mrs. T Martin , who was assigned a lease of a one bedroom apartment in Grange Over Sands in March 2011. The question was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparative properties in Grange Over Sands with 100 year plus lease were valued around £176,200. The mid-range amount of ground rent was £65 collected per annum. The lease elapsed in 2081. Having 56 years outstanding we estimated the compensation to the landlord for the lease extension to be within £29,500 and £34,000 plus expenses.
Mr L Robinson moved into a first floor apartment in Grange Over Sands in August 1995. We are asked if we could approximate the premium would be to prolong the lease by an additional years. Comparable flats in Grange Over Sands with 100 year plus lease were valued around £237,600. The mid-range ground rent payable was £45 billed per annum. The lease ended in 2092. Considering the 67 years unexpired we calculated the premium to the freeholder to extend the lease to be between £11,400 and £13,200 plus legals.