Chances are that if you own a flat in Grantham you actually own a long leasehold interest over your property
Leasehold properties in Grantham with in excess of 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Grantham can be a difficult process. We recommend you obtain guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Grantham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to lengthy correspondence with the freeholder of her one bedroom apartment in Grantham, Danielle initiated the lease extension process as the 80 year deadline was swiftly coming. The transaction was concluded in April 2006. The landlord’s costs were restricted to approximately 600 GBP.
Mr and Mrs. S Vincent was assigned a lease of a purpose-built flat in Grantham in June 2003. The question was if we could shed any light on how much (approximately) price would likely be to extend the lease by 90 years. Comparative residencies in Grantham with 100 year plus lease were valued around £264,000. The average ground rent payable was £60 billed monthly. The lease elapsed in 2079. Given that there were 53 years outstanding we calculated the compensation to the landlord for the lease extension to be between £37,100 and £42,800 exclusive of costs.
In 2013 we were phoned by Mr and Mrs. K Mercier who, having moved into a newly refurbished apartment in Grantham in May 2005. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Comparable properties in Grantham with an extended lease were in the region of £220,400. The average ground rent payable was £45 billed yearly. The lease lapsed on 19 August 2090. Taking into account 64 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £15,200 and £17,600 exclusive of costs.