There is no doubt about it a leasehold property in Grangetown is a wasting asset as a result of the diminishing lease term. Where the lease has, in excess of one hundred years to run then this decrease may be fractional nevertheless there will become a stage when a lease has under than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary reason why you should extend the lease without delay. Many flat owners in Grangetown will qualify for this right; however a conveyancer should be able to confirm whether you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 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 |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Grangetown,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Grangetown valuers.
Half a year ago Luca, came critically close to the eighty-year mark with the lease on his two bedroom apartment in Grangetown. In buying his home two decades ago, the unexpired term was of no relevance. Fortunately, it dawned on him that he needed to take action soon on a lease extension. Luca was able to extend his lease just in the nick of time in July. Luca and the landlord subsequently agreed on the final figure of £5,000 . If the lease had fallen lower than 80 years, the amount would have gone up by a minimum £1,000.
Mr Eliot Thomas acquired a basement apartment in Grangetown in November 2004. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year extension to my lease. Similar flats in Grangetown with an extended lease were worth £243,000. The average ground rent payable was £65 collected annually. The lease finished in 2089. Given that there were 63 years remaining we calculated the premium to the freeholder for the lease extension to be within £20,000 and £23,000 not including expenses.
Last Summer we were called by Mr and Mrs. F Roberts , who bought a garden apartment in Grangetown in January 1999. The dilemma was if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Comparative residencies in Grangetown with an extended lease were in the region of £181,600. The average amount of ground rent was £55 invoiced quarterly. The lease terminated on 20 November 2078. Having 52 years left we calculated the compensation to the freeholder to extend the lease to be between £30,400 and £35,200 exclusive of professional charges.