The closer a residential lease in Grangetown nears to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, beyond 99 years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has fewer than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should consider extending without delay. Most flat owners in Grangetown will qualify for this right; that being said a conveyancer will be able to advise if you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold residencies in Grangetown with in excess of one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Yorkshire 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. |
Regardless of whether you are a tenant or a landlord in Grangetown,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Grangetown valuers.
Off the back of protracted discussions with the landlord of her basement flat in Grangetown, Anna initiated the lease extension process just as the lease was nearing the crucial 80-year mark. The legal work was finalised in April 2008. The freeholder’s fees were restricted to slightly above 600 pounds.
Last Christmas we were phoned by Mrs Sophie Young , who was assigned a lease of a one bedroom flat in Grangetown in March 1999. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Comparable residencies in Grangetown with 100 year plus lease were valued about £205,000. The average amount of ground rent was £50 collected monthly. The lease concluded in 2104. Considering the 79 years remaining we calculated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 plus fees.
Last Christmas we were phoned by Mr and Mrs. Y Morel , who was assigned a lease of a purpose-built apartment in Grangetown in July 1999. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Identical homes in Grangetown with 100 year plus lease were in the region of £275,000. The mid-range amount of ground rent was £65 collected monthly. The lease elapsed on 2 September 2093. Considering the 68 years unexpired we estimated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 not including legals.