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 as a result any extension of your lease becomes more expensive. It is the case that most Grange Over Sands tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Grange Over Sands you must investigate if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
Leasehold premises in Grange Over Sands with more than one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges justify 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
The lawyers that we work with procure Grange Over Sands lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Subsequent to protracted discussions with the landlord of her leasehold apartment in Grange Over Sands, Chantelle commenced the lease extension process as the 80 year deadline was swiftly coming. The lease extension completed in February 2012. The freeholder’s charges were kept to an absolute minimum.
Mr and Mrs. Y Kelly purchased a studio flat in Grange Over Sands in April 1998. We are asked if we could approximate the price would likely be for a 90 year lease extension. Identical flats in Grange Over Sands with a long lease were worth £275,000. The average amount of ground rent was £55 collected quarterly. The lease came to a finish in 2103. Considering the 77 years remaining we estimated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 plus legals.
Last October we were e-mailed by Mr and Mrs. P Davis , who took over the lease of a studio flat in Grange Over Sands in January 2008. The question was if we could estimate the price would likely be to prolong the lease by 90 years. Identical residencies in Grange Over Sands with an extended lease were worth £183,600. The mid-range ground rent payable was £65 collected annually. The lease elapsed on 14 May 2083. Taking into account 57 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 not including costs.