There is no doubt about it a leasehold flat or house in Grangetown is a wasting asset as a result of the shortening lease. Where the residual term has, over 125 years remaining then this decrease may be of little impact that being said there will become a point in time when a lease has less than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary reason why you should consider extending without delay. Many flat owners in Grangetown will meet the qualifying criteria; however a conveyancing solicitor can advise if you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you enhanced control over the value of your Grangetown leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
After unsuccessful discussions with the landlord of her one bedroom apartment in Grangetown, Laura initiated the lease extension process just as the lease was coming close to the critical eighty-year deadline. The transaction was concluded in November 2014. The freeholder’s charges were kept to an absolute minimum.
In 2009 we were phoned by Mr and Mrs. G Campbell who, having was assigned a lease of a one bedroom apartment in Grangetown in July 2007. The dilemma was if we could approximate the price could be for a 90 year lease extension. Comparable properties in Grangetown with a long lease were worth £250,400. The average ground rent payable was £65 invoiced quarterly. The lease finished on 8 January 2089. Given that there were 64 years outstanding we calculated the compensation to the landlord for the lease extension to be within £19,000 and £22,000 exclusive of costs.
Last April we were phoned by Mr D Rose , who owned a first floor flat in Grangetown in October 2003. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year lease extension. Comparable flats in Grangetown with 100 year plus lease were in the region of £184,000. The average amount of ground rent was £55 collected annually. The lease came to a finish in 2078. Taking into account 53 years remaining we estimated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 plus professional charges.