Owning a apartment usually means owning a lease of the property, which has a finite term of years. your lease will normally be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Grappenhall. Inevitably, the period of lease left shortens as time goes by. This is often ignored and only raises itself as an issue when the property has to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to obtain a lease extension. Qualifying leaseholders in Grappenhall have the right to extend the lease for a further 90 years under Leasehold Reform legislation. Do give careful attention before putting off your Grappenhall lease extension. Holding off the cost now only increases the price you will ultimately have to pay for a lease extension
Leasehold premises in Grappenhall with more than one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Irrespective of whether you are a tenant or a landlord in Grappenhall,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 Grappenhall valuers.
Luca was the the leasehold owner of a studio apartment in Grappenhall on the market with a lease of a little over sixty years unexpired. Luca informally spoke with his landlord a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were Luca to exercise his statutory right. Luca procured expert advice and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
Last Spring we were approach by Mr D Moreau , who acquired a garden flat in Grappenhall in March 2008. We are asked if we could estimate the price would likely be to prolong the lease by an additional years. Similar properties in Grappenhall with an extended lease were in the region of £260,000. The average ground rent payable was £50 billed every twelve months. The lease expired on 5 July 2098. Having 72 years left we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus fees.
In 2014 we were phoned by Dr Gemma Bennett who, having completed a ground floor apartment in Grappenhall in July 2012. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by a further 90 years. Identical homes in Grappenhall with a long lease were worth £256,600. The average amount of ground rent was £60 collected every twelve months. The lease lapsed in 2078. Having 52 years left we estimated the compensation to the freeholder for the lease extension to be between £39,000 and £45,000 plus legals.