On the balance of probabilities where you own a flat in Grappenhall you actually own a long leasehold interest over your property
Leasehold premises in Grappenhall with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Using our service gives you increased control over the value of your Grappenhall leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to lengthy discussions with the landlord of her one bedroom apartment in Grappenhall, Natalie commenced the lease extension process as the eighty year deadline was quickly nearing. The lease extension was finalised in March 2005. The landlord’s fees were kept to an absolute minimum.
In 2010 we were contacted by Dr Natasha Thomas who, having bought a one bedroom apartment in Grappenhall in November 1998. We are asked if we could estimate the price could be for a ninety year extension to my lease. Comparative residencies in Grappenhall with an extended lease were in the region of £176,200. The mid-range amount of ground rent was £65 collected per annum. The lease lapsed on 28 October 2081. Having 56 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £29,500 and £34,000 not including professional charges.
Dr F Ward completed a garden flat in Grappenhall in May 2012. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Similar residencies in Grappenhall with a long lease were valued around £242,600. The mid-range ground rent payable was £45 billed quarterly. The lease ended on 2 February 2092. Given that there were 67 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £11,400 and £13,200 not including expenses.