Unfortunately that a Grangetown residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Grangetown property prices.Where your lease has approximately 90 years left, you should start considering a lease extension. If the number of years remaining drops below 80 years, you will end up paying half 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 lawyer should be able to confirm whether you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced 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 over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the property will be worth the same as 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Lease extensions in Grangetown can be a difficult process. We recommend you obtain guidance from a lawyer and valuer 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 dealing with Grangetown lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Riley owned a 2 bedroom flat in Grangetown on the market with a lease of a little over sixty years outstanding. Riley on an informal basis spoke with his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Riley to exercise his statutory right. Riley obtained expert advice and secured satisfactory deal informally and readily saleable.
Mr and Mrs. O Miller purchased a garden flat in Grangetown in April 2010. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Similar properties in Grangetown with a long lease were worth £166,800. The mid-range amount of ground rent was £50 invoiced annually. The lease end date was on 13 June 2076. Taking into account 50 years remaining we approximated the compensation to the freeholder to extend the lease to be within £32,300 and £37,400 plus legals.
Last September we were called by Mrs Courtney King , who moved into a recently refurbished apartment in Grangetown in March 1995. The dilemma was if we could estimate the price could be for a 90 year extension to my lease. Comparable residencies in Grangetown with 100 year plus lease were worth £280,000. The average amount of ground rent was £45 billed annually. The lease termination date was in 2096. Given that there were 70 years left we approximated the premium to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of costs.