Grappenhall leases on domestic deteriorating in value. if your lease has about 90 years remaining, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease drops below this level then you start incurring an additional element called marriage value. Flat owners in Grappenhall will mostly qualify for a lease extension; however it’s a good idea to check with a lawyer to check your eligibility. In some circumstances you may not be entitled. There are prescribed timetables and procedures to comply with once the process has started so it’s prudent to be guided by a lawyer during the process.
Leasehold properties 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 freehold unless savings on ground rent and service charges merit 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Godiva Mortgages | 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. |
Lease extensions in Grappenhall can be a difficult process. We recommend you secure guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
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 a wealth of experience dealing with Grappenhall lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of eight months of unsuccessful negotiations with the freeholder of her leasehold apartment in Grappenhall, Amber initiated the lease extension process just as the lease was coming close to the all-important 80-year threshold. The legal work was concluded in April 2008. The freeholder’s fees were negotiated to about five hundred GBP.
In 2013 we were approached by Dr Alisha Reed who, having bought a basement flat in Grappenhall in February 2007. We are asked if we could approximate the price could be for a ninety year extension to my lease. Comparative homes in Grappenhall with a long lease were worth £210,600. The average ground rent payable was £45 collected quarterly. The lease expired in 2086. Given that there were 62 years unexpired we approximated the premium to the freeholder to extend the lease to be within £18,100 and £20,800 plus legals.
In 2014 we were e-mailed by Ms B Fournier who, having acquired a garden flat in Grappenhall in August 2012. The dilemma was if we could estimate the price could be to extend the lease by an additional years. Comparable flats in Grappenhall with 100 year plus lease were worth £265,000. The average ground rent payable was £50 collected per annum. The lease elapsed on 4 March 2097. Having 73 years left we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of fees.