The basic rule is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Grantham may extend the lease for an additional 90 years in accordance with statute. Please give careful consideration before delaying your Grantham lease extension. Shelving the costs now simply increases the price you will eventually be required to pay for a lease extension.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the residence will be worth the same as 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 lawyers that we work with handle Grantham 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.
Last Autumn Toby, came critically near to the 80-year threshold with the lease on his two bedroom apartment in Grantham. Having purchased his flat 18 years ago, the unexpired term was of little concern. Fortunately, he realised he would soon be paying an inflated amount for a lease extension. Toby extended the lease just in the nick of time last August. Toby and the freeholder subsequently agreed on an amount of £6,000 . If the lease had slipped below eighty years, the sum would have increased by at least £1,050.
Last Spring we were e-mailed by Mr and Mrs. L Petit , who acquired a ground floor apartment in Grantham in October 1995. The question was if we could approximate the premium would likely be for a 90 year extension to my lease. Comparable properties in Grantham with 100 year plus lease were worth £250,000. The average amount of ground rent was £50 collected annually. The lease terminated on 24 January 2095. Given that there were 69 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus legals.
Mr W Martinez bought a first floor apartment in Grantham in May 2008. The dilemma was if we could approximate the premium would likely be for a ninety year lease extension. Similar residencies in Grantham with 100 year plus lease were in the region of £285,000. The average ground rent payable was £55 billed every twelve months. The lease expiry date was on 12 February 2106. Taking into account 80 years as a residual term we estimated the premium to the landlord for the lease extension to be within £12,400 and £14,200 plus fees.