Unfortunately that a Grangetown residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Grangetown property prices.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If the number of years remaining falls below 80 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. The marriage fee is the amount of additional value that a lease extension will add the property Most leasehold owners in Grangetown will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer from beginning to end of the formalities.
It is generally considered that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | |
| National Westminster Bank | |
| Nationwide Building Society | |
| TSB | |
| Yorkshire Building Society |
Irrespective 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 experience and the close ties they enjoy with Grangetown valuers.
Daniel was the the leasehold owner of a high value apartment in Grangetown on the market with a lease of a little over sixty years unexpired. Daniel informally approached his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 yearly. No ground rent would be payable on a lease extension were Daniel to exercise his statutory right. Daniel procured expert legal guidance and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
Mr and Mrs. A Torres bought a basement flat in Grangetown in August 2012. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Similar properties in Grangetown with 100 year plus lease were worth £280,000. The average ground rent payable was £45 collected annually. The lease expired on 10 February 2096. Considering the 70 years unexpired we approximated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including professional charges.
Last Spring we were contacted by Ms J Cox , who purchased a one bedroom apartment in Grangetown in May 2003. We are asked if we could estimate the premium would likely be to prolong the lease by 90 years. Comparable flats in Grangetown with an extended lease were worth £223,400. The mid-range ground rent payable was £60 invoiced quarterly. The lease elapsed on 28 April 2085. Given that there were 59 years remaining we calculated the compensation to the landlord to extend the lease to be between £27,600 and £31,800 plus expenses.