Unfortunately that a Grappenhall residential lease is a deteriorating asset. The lease value reduces 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 Grappenhall property market.Once your lease gets to 85ish years, you should start considering a lease extension. If lease term slips under 80 years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Grappenhall will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process is initiated and you will need to be guided by your lawyer throughout the formalities.
Leasehold properties in Grappenhall with over 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Birmingham Midshires | |
| Chelsea Building Society | |
| Skipton Building Society |
Using our service will provide you increased control over the value of your Grappenhall leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Teddy, started to get close to the 80-year threshold with the lease on his basement apartment in Grappenhall. Having bought his home two decades ago, the unexpired term was of little bearing. Fortunately, he noticed he needed to take steps soon on Extending the lease. Teddy extended the lease just ahead of time in July. Teddy and the freeholder via the management company ultimately agreed on the final figure of £5,000 . If he had missed the deadline, the premium would have escalated by a minimum £1,150.
Last year we were approach by Mr and Mrs. P Morris , who acquired a one bedroom flat in Grappenhall in March 1999. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Comparable homes in Grappenhall with an extended lease were worth £275,000. The average ground rent payable was £55 collected annually. The lease elapsed on 14 August 2102. Considering the 76 years unexpired we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus legals.
Last Summer we were approach by Mrs Y André , who acquired a newly refurbished flat in Grappenhall in February 1999. The question was if we could estimate the price would likely be for a ninety year extension to my lease. Identical residencies in Grappenhall with 100 year plus lease were valued about £176,200. The mid-range amount of ground rent was £65 billed annually. The lease lapsed on 3 October 2082. Considering the 56 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £29,500 and £34,000 not including fees.