For anyone whose Grantham property is held on a long lease, our message is clear – if you do nothing, your property will ultimately revert to the freeholder, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more expensive it will be to obtain a lease extension.
It is generally accepted that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | 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 also be not less than 75 years at the outset of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Grantham,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 experience and the close ties they enjoy with Grantham valuers.
Following protracted correspondence with the landlord of her purpose-built flat in Grantham, Rhiannon commenced the lease extension process as the 80 year deadline was rapidly coming. The legal work completed in September 2010. The freeholder’s costs were kept to an absolute minimum.
Last year we were approach by Mr and Mrs. P Clark , who purchased a basement flat in Grantham in October 2001. The dilemma was if we could approximate the premium would likely be for a ninety year lease extension. Comparative flats in Grantham with 100 year plus lease were in the region of £246,800. The average amount of ground rent was £60 invoiced quarterly. The lease ran out on 2 July 2075. Given that there were 50 years outstanding we calculated the premium to the landlord to extend the lease to be between £44,700 and £51,600 exclusive of fees.
Mr and Mrs. L Gómez owned a garden flat in Grantham in April 2006. We are asked if we could approximate the price could be for a ninety year extension to my lease. Comparable properties in Grantham with a long lease were worth £203,200. The average ground rent payable was £65 invoiced every twelve months. The lease end date was in 2086. Taking into account 61 years unexpired we estimated the compensation to the landlord to extend the lease to be within £19,000 and £22,000 not including professional charges.