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Top reasons for Grange Park lease extension

Why you should start your Grange Park lease extension today:

A Grange Park leasehold property depreciates with the years remaining on the lease.

The only way is down when it comes to Grange Park lease terms. Grange Park properties that have a residual term less than than 80 years will reduce in value at a rapid rate, and the cost to extend your lease will increase.

Grange Park property with a lease extension has roughly the same value as a freehold

Leasehold properties in Grange Park with over one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.

Lending institutions may decide not to finance a property on a short lease

Lenders are inclined not lend on short residential leases. You are likely to encounter difficulties where you need to sell your flat in Grange Park if the unexpired term of your lease is under the criteria set by the majority of lenders. Different lenders have different criteria but on the whole theyrequire a minimum remaining lease term of seventy years.

Lender Requirement
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;
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.
Leeds Building Society 85 years remaing from the start 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.

What makes us experts in Grange Park lease extensions?

Irrespective of whether you are a tenant or a landlord in Grange Park,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 Park valuers.

Grange Park Lease Extension Case Studies:

Lewis, Grange Park, Northamptonshire

In 2014 Lewis, came perilously close to the 80-year threshold with the lease on his leasehold apartment in Grange Park. In buying his flat twenty years previously, the length of the lease was of minimal interest. As luck would have it, it dawned on him that he needed to take action soon on Extending the lease. Lewis arranged for a lease extension just under the wire last September. Lewis and the freeholder subsequently agreed on a premium of £5,000 . If the lease had slipped to less than eighty years, the premium would have gone up by at least £925.

Grange Park case:

Dr Ibrahim Martin was assigned a lease of a first floor flat in Grange Park in July 1997. The question was if we could estimate the premium would likely be to prolong the lease by ninety years. Similar homes in Grange Park with 100 year plus lease were in the region of £275,000. The mid-range ground rent payable was £55 billed per annum. The lease came to a finish in 2099. Given that there were 76 years left we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of costs.

Decision in Haringey

An example of a Lease Extension decision for a Grange Park property 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 related to 1 flat. The unexpired lease term was 81.79 years.