Grange Park leases on domestic properties are gradually losing value. if your lease has in the region of ninety years unexpired, you should start considering the need for a lease extension. If lease term dips under eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Grange Park will mostly qualify for a lease extension; however a solicitor should be able check your eligibility. In some cases you may not qualify. There are prescribed deadlines and procedures to follow once the process is triggered so it’s best to be guided by a lawyer during the process.
Leasehold premises in Grange Park with more than one hundred years unexpired on the lease are sometimes referred to as ‘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 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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 remaining 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. |
Retaining our service gives you enhanced control over the value of your Grange Park leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Jasper, started to get close to the 80-year mark with the lease on his garden apartment in Grange Park. Having bought his home twenty years ago, the lease term was of little concern. by good luck, he realised he would imminently be paying an inflated amount for a lease extension. Jasper was able to extend his lease just in the nick of time in January. Jasper and the landlord who owned the flat above ultimately settled on sum of £6,000 . If the lease had slid below 80 years, the figure would have escalated by a minimum £900.
In 2014 we were e-mailed by Dr L Gunderson who, having owned a purpose-built flat in Grange Park in February 2000. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparative homes in Grange Park with a long lease were worth £265,000. The average ground rent payable was £50 billed yearly. The lease end date was on 27 August 2098. Taking into account 73 years remaining we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus legals.
An example of a Lease Extension case for a Grange Park residence 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 number of years remaining on the existing lease(s) was 81.79 years.