Grappenhall leases on domestic properties are gradually losing value. Where your lease has approximately ninety years remaining, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease falls below this level then you start paying an additional element called marriage value. Leasehold owners in Grappenhall will usually be legally entitled to a lease extension; however a solicitor should be able check if you qualify. In some situations you may not be entitled. There are also strict deadlines and steps to comply with once the process has commenced so it’s prudent to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
Lease extensions in Grappenhall can be a difficult process. We recommend you get guidance from a conveyancing solicitor and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Grappenhall lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Stanley was the the leasehold proprietor of a studio apartment in Grappenhall being sold with a lease of fraction over 61 years remaining. Stanley informally spoke with his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Stanley to invoke his statutory right. Stanley procured expert legal guidance and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
In 2010 we were called by Mr and Mrs. J Sánchez who, having bought a basement flat in Grappenhall in February 2011. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Similar homes in Grappenhall with 100 year plus lease were worth £210,600. The average ground rent payable was £45 collected yearly. The lease expired in 2088. Given that there were 62 years outstanding we estimated the premium to the landlord for the lease extension to be within £18,100 and £20,800 exclusive of costs.
In 2011 we were contacted by Mr and Mrs. A Laurent who, having moved into a recently refurbished flat in Grappenhall in January 2009. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by a further 90 years. Comparable residencies in Grappenhall with 100 year plus lease were in the region of £265,000. The mid-range ground rent payable was £50 collected annually. The lease ran out on 15 July 2099. Having 73 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including costs.