The market value of a leasehold property in Grange Park is impacted by how many years the lease has remaining. If it is near to or less than 80 years you should envisage problems on re-sale, so it is advisable to arrange for a lease extension prior to buying. Ideally one should start the lease extension process when the lease still has 82 years to run so that formalities can be concluded in advance of the 80 year cut off point. Current legislation enables Grange Park qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus a further term of ninety years. The intention of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Grange Park with over 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth 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 |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Grange Park,the lease extension experts that we work with will always be willing 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 Park valuers.
Last year Archie, came critically near to the eighty-year mark with the lease on his first floor apartment in Grange Park. In buying his flat 19 years ago, the lease term was of minimal relevance. Thankfully, he became aware that he would soon be paying an escalated premium for a lease extension. Archie was able to extend his lease just in the nick of time in August. Archie and the landlord who owned the flat above subsequently settled on a premium of £5,000 . If he had missed the deadline, the sum would have increased by at least £1,150.
In 2009 we were phoned by Ms Grace Bertrand who, having owned a one bedroom flat in Grange Park in July 1997. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by 90 years. Comparable residencies in Grange Park with an extended lease were worth £225,400. The average amount of ground rent was £45 billed per annum. The lease terminated on 27 August 2090. Having 64 years remaining we estimated the premium to the landlord to extend the lease to be between £16,200 and £18,600 not including costs.
An example of a Lease Extension matter before the tribunal for a Grange Park premises is First Floor Flat 109 Lyndhurst Road in May 2010. Following a vesting order by Edmonton County Court on 29th October 2009 the Tribunal decided on a figure of £5,012 for a lease extension. This case was in relation to 1 flat. The unexpired residue of the current lease was 81.79 years.