As the the remaining lease term of a Grange Over Sands residential lease diminished so does its value and therefore the value of your property. Where the lease has, in excess of one hundred years to run then this decrease may be negligible that being said there will become a stage when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main rational as to why you should consider extending sooner than later. The majority of flat owners in Grange Over Sands will qualify for this right; nevertheless a conveyancing solicitor can advise whether you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| Godiva Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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 landlord in Grange Over Sands,the lease extension solicitors that we work with will always be happy 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.
In the wake of 9 months of unsuccessful correspondence with the landlord of her studio flat in Grange Over Sands, Sarah commenced the lease extension process just as her lease was approaching the crucial eighty-year mark. The lease extension was finalised in November 2009. The landlord’s fees were kept to an absolute minimum.
In 2009 we were e-mailed by Dr Andrew Leroy who, having bought a newly refurbished apartment in Grange Over Sands in February 2012. The dilemma was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by 90 years. Identical properties in Grange Over Sands with an extended lease were worth £210,600. The mid-range ground rent payable was £45 collected per annum. The lease came to a finish in 2088. Considering the 62 years unexpired we estimated the premium to the landlord to extend the lease to be between £18,100 and £20,800 not including legals.
In 2011 we were approached by Dr Phoebe Girard who, having bought a basement flat in Grange Over Sands in October 2011. We are asked if we could estimate the premium would be to prolong the lease by an additional years. Identical premises in Grange Over Sands with an extended lease were valued around £260,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease end date was in 2099. Considering the 73 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus expenses.