Grangetown leases on residential properties are gradually losing value. if your lease has about 90 years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease falls below this level then you start incurring an additional element called marriage value. Leasehold owners in Grangetown will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancer to check your eligibility. In certain cases you may not be entitled. There are also strict timetables and formalities to comply with once the process is initiated so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Grangetown with more than 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
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 conveyancing solicitor we work with provide it.
Nathaniel was the the leasehold proprietor of a 2 bedroom flat in Grangetown being sold with a lease of a little over 61 years remaining. Nathaniel informally approached his landlord being a well known Bristol-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 per annum. No ground rent would be due on a lease extension were Nathaniel to exercise his statutory right. Nathaniel obtained expert legal guidance and secured satisfactory resolution informally and readily saleable.
Mr and Mrs. A López owned a purpose-built apartment in Grangetown in July 2009. The question was if we could estimate the premium would be for a ninety year extension to my lease. Comparative premises in Grangetown with a long lease were in the region of £233,200. The mid-range ground rent payable was £60 collected yearly. The lease ended on 25 June 2087. Taking into account 61 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £22,800 and £26,400 exclusive of professional charges.
Mr and Mrs. E Norbert took over the lease of a purpose-built apartment in Grangetown in October 2004. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by a further 90 years. Comparable properties in Grangetown with 100 year plus lease were valued around £166,800. The mid-range amount of ground rent was £50 collected annually. The lease terminated in 2076. Having 50 years as a residual term we calculated the premium to the landlord to extend the lease to be between £32,300 and £37,400 exclusive of expenses.