It’s an underpublicised certainty that a Grange Over Sands residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Grange Over Sands property market.Once your lease nears 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below 80 years - otherwise a higher premium will be due. Most flat owners in Grange Over Sands will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Lease extensions in Grange Over Sands can be a difficult process. We recommend you secure guidance from a conveyancer 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 a wealth of experience 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.
Twenty four months ago Stanley, came dangerously close to the 80-year threshold with the lease on his studio flat in Grange Over Sands. In buying his flat two decades ago, the length of the lease was of no importance. Thankfully, he noticed he needed to take action soon on Extending the lease. Stanley extended the lease at the eleventh hour in March. Stanley and the landlord subsequently agreed on an amount of £5,000 . If he not met the deadline, the premium would have become more costly by a minimum £875.
Mr Jamie Hernández bought a recently refurbished flat in Grange Over Sands in April 2008. The question was if we could approximate the price would be to prolong the lease by ninety years. Identical premises in Grange Over Sands with a long lease were in the region of £183,600. The average ground rent payable was £65 collected every twelve months. The lease expired on 13 August 2082. Considering the 57 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 not including expenses.
Dr T Walker completed a ground floor apartment in Grange Over Sands in March 2002. We are asked if we could shed any light on how much (roughly) price would be for a ninety year lease extension. Identical flats in Grange Over Sands with a long lease were worth £245,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease terminated in 2093. Considering the 68 years left we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of fees.