With a residential leasehold premises in Grangetown, you are in fact renting it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive particularly once there are fewer than eighty years remaining. Anyone in Grangetown with a lease approaching 81 years left should seriously consider extending it without delay. When a lease has fewer than 80 years remaining, under the current Act the freeholder is entitled to calculate and charge a greater premium, based on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold premises in Grangetown with in excess of 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Godiva Mortgages | 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. |
| 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. |
Engaging our service will provide you increased control over the value of your Grangetown leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Ibrahim was the the leasehold proprietor of a conversion flat in Grangetown on the market with a lease of fraction over 72 years outstanding. Ibrahim on an informal basis contacted his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £50 annually. No ground rent would be due on a lease extension were Ibrahim to invoke his statutory right. Ibrahim obtained expert legal guidance and was able to make an informed decision and deal with the matter and sell the property.
In 2011 we were approached by Mr and Mrs. S Cook who, having took over the lease of a garden apartment in Grangetown in January 1998. The dilemma was if we could shed any light on how much (roughly) price could be to extend the lease by 90 years. Comparative homes in Grangetown with 100 year plus lease were worth £257,800. The average amount of ground rent was £65 collected every twelve months. The lease ran out on 3 February 2091. Considering the 65 years left we estimated the premium to the landlord for the lease extension to be within £18,100 and £20,800 not including expenses.
Mrs A Girard was assigned a lease of a studio apartment in Grangetown in July 2009. The question was if we could approximate the premium would likely be for a ninety year extension to my lease. Comparative properties in Grangetown with a long lease were in the region of £191,400. The mid-range ground rent payable was £55 billed yearly. The lease came to a finish in 2080. Given that there were 54 years remaining we estimated the compensation to the landlord for the lease extension to be within £34,200 and £39,600 not including professional charges.