Grange Over Sands leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most Grange Over Sands tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Grange Over Sands you must see if your lease has between 70 and ninety years remaining. There are compelling reasons why a Grange Over Sands leaseholder with a lease having around eighty years left should take steps to make sure that a lease extension is actioned without delay
Leasehold properties in Grange Over Sands with in excess of one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Regardless of whether you are a tenant or a freeholder in Grange Over Sands,the lease extension lawyers that we work with will always be prepared 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.
Jamie was the the leasehold owner of a studio apartment in Grange Over Sands on the market with a lease of a few days over 61 years unexpired. Jamie informally contacted his landlord a well known local-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Jamie to invoke his statutory right. Jamie obtained expert legal guidance and secured an acceptable deal without resorting to tribunal and sell the flat.
Last Christmas we were e-mailed by Mr and Mrs. K Nelson , who purchased a first floor flat in Grange Over Sands in January 2006. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Identical properties in Grange Over Sands with an extended lease were in the region of £246,800. The average ground rent payable was £60 collected annually. The lease concluded on 24 March 2076. Having 50 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £44,700 and £51,600 plus expenses.
Mr and Mrs. D Adams completed a purpose-built apartment in Grange Over Sands in October 1995. The question was if we could approximate the premium could be to extend the lease by a further 90 years. Comparable flats in Grange Over Sands with a long lease were worth £203,200. The mid-range ground rent payable was £65 billed yearly. The lease concluded in 2087. Given that there were 61 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £19,000 and £22,000 not including expenses.