There is no doubt about it a leasehold flat or house in Grappenhall is a wasting asset as a result of the shortening lease. Where the lease has, beyond 125 years remaining then this decrease may be fractional nevertheless there will become a stage when a lease has fewer than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should extend the lease without delay. Most flat owners in Grappenhall will meet the qualifying criteria; that being said a conveyancing solicitor will be able to confirm if you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally accepted that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| Chelsea Building Society | 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. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with procure Grappenhall 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 conveyancer we work with provide it.
Following unsuccessful discussions with the freeholder of her one bedroom flat in Grappenhall, Nicole initiated the lease extension process just as the lease was coming close to the critical eighty-year mark. The lease extension was finalised in May 2011. The landlord’s fees were restricted to approximately 700 GBP.
Last Autumn we were contacted by Dr Ellie Rivera , who acquired a one bedroom apartment in Grappenhall in November 2002. The dilemma was if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Comparative homes in Grappenhall with a long lease were worth £255,000. The average amount of ground rent was £50 collected monthly. The lease end date was on 26 April 2096. Having 70 years left we calculated the premium to the landlord to extend the lease to be between £10,500 and £12,000 not including expenses.
Last year we were called by Mr and Mrs. W Phillips , who completed a first floor flat in Grappenhall in January 2002. The question was if we could estimate the price would be for a 90 year extension to my lease. Identical properties in Grappenhall with 100 year plus lease were valued around £246,800. The average ground rent payable was £60 billed every twelve months. The lease concluded in 2076. Considering the 50 years left we calculated the compensation to the freeholder to extend the lease to be within £44,700 and £51,600 plus costs.