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Why you should commence your Grange Over Sands lease extension

Main reasons to commence your Grange Over Sands lease extension today:

Increase your lease and increase your Grange Over Sands property value

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 becomes more expensive. Legislation has been in place for sometime now which permits qualifying Grange Over Sands residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Grange Over Sands you really ought to investigate if your lease has between seventy and 90 years remaining. There are good reasons why a Grange Over Sands flat owner with a lease having around 80 years left should take steps to ensure that a lease extension is effected without delay

An extended lease has roughly the same value as a freehold

Leasehold premises in Grange Over Sands with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.

Mortgage lenders may not finance a property on a short lease

Banks and Building Societies have set criteria when lending monies charged on leasehold homes. Some will simply refrain from lending at all once an unexpired lease term drops lower than a certain unexpired lease term. Many Banks and Building Societies will not consider property with an unexpired below seventy years as acceptable security. In addition to impacting your ability to sell, it is also relevant if you are wanting to remortgage your Grange Over Sands home.

Lender Requirement
Bank of Scotland Minimum 70 years from the date of the mortgage.
Barclays plc Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below).

Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office.

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;
Leeds Building Society 85 years remaining from the start 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
Royal Bank of Scotland Mortgage term plus 30 years.

Get in touch with one of our Grange Over Sands lease extension solicitors or enfranchisement solicitors

Irrespective 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 experience and the close ties they enjoy with Grange Over Sands valuers.

Grange Over Sands Lease Extension Case Summaries:

Millie, Grange Over Sands, Cumbria,

Trailing lengthy negotiations with the freeholder of her garden apartment in Grange Over Sands, Millie initiated the lease extension process just as her lease was nearing the all-important eighty-year threshold. The lease extension completed in July 2006. The landlord’s charges were kept to an absolute minimum.

Grange Over Sands case:

Mr and Mrs. I Carter completed a ground floor flat in Grange Over Sands in January 1995. The dilemma was if we could approximate the premium would be for a ninety year lease extension. Comparative properties in Grange Over Sands with 100 year plus lease were worth £245,000. The average ground rent payable was £50 collected yearly. The lease came to a finish on 28 September 2092. Considering the 68 years remaining we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus professional charges.

Grange Over Sands case:

Last month we were approach by Mr and Mrs. L Baker , who moved into a first floor flat in Grange Over Sands in May 1996. We are asked if we could shed any light on how much (roughly) premium would be to extend the lease by 90 years. Identical properties in Grange Over Sands with an extended lease were worth £285,000. The mid-range ground rent payable was £55 collected yearly. The lease expiry date was in 2103. Considering the 79 years outstanding we approximated the premium to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of fees.