On the balance of probabilities where you own a flat in Grangetown you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Godiva Mortgages | 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. |
| 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. |
| 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. |
The conveyancing solicitors that we work with undertake Grangetown lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
During the course of the last few months Luca, came perilously near to the 80-year threshold with the lease on his basement apartment in Grangetown. Having bought his home twenty years previously, the lease term was of little bearing. Fortunately, he noticed he would imminently be paying an escalated premium for Extending the lease. Luca was able to extend his lease just ahead of time last August. Luca and the freeholder via the managing agents ultimately agreed on sum of £6,000 . If he not met the deadline, the premium would have escalated by at least £1,050.
Mrs G Mitchell bought a one bedroom apartment in Grangetown in June 2000. The dilemma was if we could shed any light on how much (roughly) price would be for a ninety year extension to my lease. Similar properties in Grangetown with an extended lease were worth £285,000. The average ground rent payable was £45 collected monthly. The lease expired in 2097. Taking into account 72 years left we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of expenses.
Dr J Sánchez owned a ground floor apartment in Grangetown in October 1995. The question was if we could shed any light on how much (roughly) premium could be to prolong the lease by a further 90 years. Comparable premises in Grangetown with 100 year plus lease were valued around £233,200. The mid-range ground rent payable was £60 collected monthly. The lease ended on 20 July 2086. Having 61 years outstanding we calculated the compensation to the landlord to extend the lease to be within £22,800 and £26,400 not including professional charges.