The only way is down when it comes to Grappenhall lease terms. Grappenhall leaseholds that have a remaining term lower than 80 years will drop in market price at a rapid rate, and the cost to extend your lease will go up.
Leasehold properties in Grappenhall with over 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date 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. |
The conveyancing solicitors that we work with undertake 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 lawyer we work with provide it.
In 2014 Tyler, started to get near to the 80-year threshold with the lease on his leasehold apartment in Grappenhall. In buying his flat 19 years ago, the lease term was of little significance. As luck would have it, it dawned on him that he needed to take action soon on a lease extension. Tyler was able to extend his lease at the eleventh hour last May. Tyler and the landlord in the end settled on sum of £5,500 . If the lease had slipped to less than eighty years, the amount would have gone up by at least £850.
Dr B Fournier took over the lease of a ground floor flat in Grappenhall in November 2009. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year lease extension. Comparable premises in Grappenhall with 100 year plus lease were worth £235,200. The average amount of ground rent was £45 collected per annum. The lease elapsed on 14 October 2092. Having 66 years unexpired we calculated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of expenses.
Last Winter we were approach by Mr and Mrs. V Vincent , who completed a purpose-built flat in Grappenhall in April 1997. We are asked if we could estimate the price would be to extend the lease by ninety years. Comparative premises in Grappenhall with a long lease were valued about £275,000. The mid-range ground rent payable was £55 invoiced every twelve months. The lease expiry date was on 7 October 2103. Taking into account 77 years remaining we estimated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of costs.