Main reasons to start your Grangetown lease extension
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Why you should start your Grangetown lease extension today: </h3>
<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/grangetown">Grangetown</a> leasehold property depreciates with the years remaining on the lease.
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Grangetown leases on domestic deteriorating in value. Where your lease has in the region of 90 years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for the lease extension to be in place before the term of the current lease dips under eighty years - otherwise a higher premium will be payable. Flat owners in Grangetown will mostly qualify for a lease extension; however It would be wise to check with a conveyancer to confirm if you qualify. In some cases you may not be entitled. There are prescribed deadlines and procedures to comply with once the process has started so it’s best to be guided by a conveyancing solicitor during the process.
<h4>An extended lease is almost the same value as a freehold</h4>
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Leasehold properties in Grangetown with more than 100 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 to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it. <h4>Mortgage lenders will not loan monies on a short lease</h4> Mortgage lenders have set criteria when lending monies secured on leasehold property. Many will simply refrain from lending at all once the remaining lease term falls under a certain unexpired lease term. Many Banks and Building Societies will not consider property with a remaining term of less than seventy years suitable security. As well as this being important when selling, it is also relevant if you are intending to remortgage your Grangetown property.
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<tr><th>Lender</th>
<th> Requirement
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<td>Bank of Scotland</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>Godiva Mortgages</td>
<td> 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.
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<td>National Westminster Bank</td>
<td> Mortgage term plus 30 years.<br /><br />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.
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<td>Virgin</td>
<td> 85 years at the time of completion. If it's less, we require it to be extended on or before completion.
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<td>Yorkshire Building Society</td>
<td> 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.
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<h4> Get in touch with one of our Grangetown lease extension solicitors or enfranchisement solicitors
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<p> Regardless of whether you are a tenant or a landlord in Grangetown,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Grangetown valuers.
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Grangetown Lease Extension Case Studies:
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<h5> Grace, Grangetown, Cardiff,</h5>
<p> Subsequent to protracted negotiations with the landlord of her purpose-built apartment in Grangetown, Grace commenced the lease extension process as the 80 year threshold was rapidly advancing. The lease extension completed in February 2010. The landlord’s costs were restricted to approximately 550 pounds.
<h5>Grangetown case:</h5>
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Last Autumn we were approach by Mr and Mrs. J Stewart , who
moved into a purpose-built flat in Grangetown in September 2006. The question was if we could shed any light on how much (approximately) premium would be for a ninety year lease extension. Similar properties in Grangetown with an extended lease were worth £184,000. The average ground rent payable was £55 collected monthly. The lease expiry date was in 2079. Taking into account 53 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 not including legals.
<h5>Grangetown case:</h5>
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In 2010 we were called by Mr and Mrs. T Robinson who, having took over the lease of a recently refurbished apartment in Grangetown in February 2011. We are asked if we could approximate the price would be to prolong the lease by 90 years. Comparable homes in Grangetown with a long lease were in the region of £290,000. The average amount of ground rent was £45 billed every twelve months. The lease elapsed on 1 March 2099. Having 73 years outstanding we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of costs.
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