The only way is down when it comes to Grangetown lease terms. Grangetown properties that have a lease term lower than 80 years will reduce in value even faster, and the cost of extending your lease will rise.
Leasehold premises in Grangetown with in excess of 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Grangetown can be a difficult process. We recommend you get professional help from a conveyancing solicitor and surveyor with experience in this area.
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.
Last October Owen, came seriously near to the 80-year mark with the lease on his one bedroom apartment in Grangetown. Having bought his home two decades ago, the unexpired term was of minimal relevance. Thankfully, he recognised he would imminently be paying an inflated amount for a lease extension. Owen was able to extend his lease just under the wire last August. Owen and the landlord eventually settled on a premium of £6,000 . If the lease had slipped to less than eighty years, the premium would have become more exhorbitant by a minimum £1,150.
Last Christmas we were e-mailed by Mr John Khan , who acquired a first floor flat in Grangetown in March 1997. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparable residencies in Grangetown with a long lease were worth £216,000. The average ground rent payable was £60 collected per annum. The lease came to a finish on 20 January 2084. Considering the 58 years outstanding we approximated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 plus legals.
Dr Jonathan Davis took over the lease of a one bedroom apartment in Grangetown in March 2005. The dilemma was if we could estimate the price would likely be to extend the lease by an additional years. Identical flats in Grangetown with 100 year plus lease were valued about £200,000. The mid-range amount of ground rent was £50 collected monthly. The lease finished on 18 March 2104. Having 78 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 fees.