The nearer a domestic lease in Grangetown nears to zero years unexpired, the the greater the reduction in the value of the property. If the lease has, beyond 100 years remaining then this decrease may be negligible that being said there will become a stage when a lease has fewer than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary logic behind why you should consider extending without delay. The majority of flat owners in Grangetown will meet the qualifying criteria; nevertheless a conveyancer should be able to confirm whether you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold properties in Grangetown with in excess of one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Grangetown,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Grangetown valuers.
Andrew owned a high value flat in Grangetown on the market with a lease of just over 61 years unexpired. Andrew informally spoke with his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 yearly. Ordinarily, ground rent would not be due on a lease extension were Andrew to exercise his statutory right. Andrew procured expert legal guidance and secured an acceptable deal informally and readily saleable.
In 2012 we were called by Dr Alex Young who, having was assigned a lease of a ground floor apartment in Grangetown in February 2009. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Identical flats in Grangetown with 100 year plus lease were worth £290,000. The average amount of ground rent was £45 billed monthly. The lease came to a finish in 2099. Considering the 73 years remaining we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including fees.
Last month we were e-mailed by Mr G Williams , who owned a studio apartment in Grangetown in October 2002. We are asked if we could estimate the premium would be to extend the lease by ninety years. Similar flats in Grangetown with a long lease were valued about £240,600. The average ground rent payable was £60 invoiced per annum. The lease finished on 8 March 2088. Given that there were 62 years left we estimated the compensation to the landlord for the lease extension to be between £21,900 and £25,200 plus professional charges.