When it comes to domestic leasehold premises in Grantham, you are actually buying an entitlement to live in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater especially once there are fewer than eighty years left. Anyone in Grantham with a lease nearing 81 years unexpired should seriously think of extending it as soon as possible. Once the lease term has under 80 years left, under the current Act the freeholder can calculate and levy a greater premium, based on a technical calculation, strangely termed as “marriage value” which is payable.
It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Grantham,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Grantham valuers.
Last Christmas Leo, started to get close to the 80-year mark with the lease on his studio apartment in Grantham. Having purchased his home two decades ago, the length of the lease was of little concern. by good luck, he became aware that he needed to take action soon on Extending the lease. Leo was able to extend his lease just in the nick of time last July. Leo and the freeholder via the managing agents in the end settled on a premium of £5,500 . If the lease had descended below eighty years, the amount would have gone up by a minimum £1,150.
Last Autumn we were called by Mr Jack Jackson , who owned a purpose-built apartment in Grantham in March 1995. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by an additional years. Comparable premises in Grantham with a long lease were worth £227,800. The mid-range ground rent payable was £45 invoiced annually. The lease expired on 4 March 2091. Given that there were 65 years unexpired we approximated the premium to the landlord to extend the lease to be between £13,300 and £15,400 not including professional charges.
Dr Shannon Bailey owned a ground floor apartment in Grantham in April 2003. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by an additional years. Comparable homes in Grantham with 100 year plus lease were in the region of £270,000. The average amount of ground rent was £55 invoiced per annum. The lease expired on 16 April 2102. Considering the 76 years remaining we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including professional charges.