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 100 years remaining then this decrease may be fractional nevertheless there will become a point in time when a lease has less than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should extend the lease sooner as opposed to later. Most flat owners in Grangetown will qualify for this right; nevertheless a conveyancer can advise if you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold premises in Grangetown with in excess of one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Grangetown can be a difficult process. We recommend you procure guidance from a conveyancer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Grangetown lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Theo owned a 2 bedroom apartment in Grangetown being sold with a lease of just over sixty years left. Theo informally approached his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £100 per annum. No ground rent would be due on a lease extension were Theo to invoke his statutory right. Theo obtained expert advice and secured an acceptable deal without resorting to tribunal and readily saleable.
Mrs Eleanor Moore owned a newly refurbished flat in Grangetown in October 2010. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year lease extension. Similar residencies in Grangetown with a long lease were in the region of £225,800. The average amount of ground rent was £60 invoiced annually. The lease lapsed in 2085. Taking into account 60 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £23,800 and £27,400 not including fees.
Last Winter we were approach by Dr Harrison Nguyen , who bought a garden flat in Grangetown in September 1997. We are asked if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Similar residencies in Grangetown with a long lease were in the region of £210,000. The average amount of ground rent was £50 billed annually. The lease elapsed on 6 November 2105. Given that there were 80 years as a residual term we approximated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including costs.