Unfortunately that a Grantham residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Grantham property market.Once your lease gets to 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under eighty years - otherwise a higher amount will be payable. Most leasehold owners in Grantham will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
Leasehold residencies in Grantham with in excess of 100 years remaining on the lease are sometimes referred to as ‘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 buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Chelsea Building Society | |
| Coventry Building Society | |
| Yorkshire Building Society |
Irrespective of whether you are a tenant or a landlord in Grantham,the lease extension solicitors 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.
In recent months Oscar, started to get close to the eighty-year mark with the lease on his basement flat in Grantham. In buying his flat two decades ago, the unexpired term was of little importance. Luckily, it dawned on him that he needed to take steps soon on Extending the lease. Oscar arranged for a lease extension at the eleventh hour last January. Oscar and the landlord who owned the flat above subsequently agreed on sum of £5,000 . If the lease had dipped to less than 80 years, the premium would have increased by a minimum £975.
Last Summer we were e-mailed by Mrs P Gunderson , who bought a first floor flat in Grantham in June 2011. We are asked if we could shed any light on how much (approximately) price would likely be to extend the lease by ninety years. Similar flats in Grantham with an extended lease were in the region of £200,800. The mid-range ground rent payable was £65 invoiced every twelve months. The lease came to a finish on 11 August 2086. Taking into account 60 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £20,900 and £24,200 not including expenses.
Last Summer we were approach by Dr U Moreau , who owned a ground floor apartment in Grantham in August 2009. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Similar properties in Grantham with an extended lease were worth £255,000. The mid-range amount of ground rent was £50 invoiced quarterly. The lease expired on 6 February 2097. Considering the 71 years outstanding we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including costs.