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Main reasons to commence your Grappenhall lease extension


Why you should commence your Grappenhall lease extension today:

Increase your lease and increase your Grappenhall property value

With a long leasehold property in Grappenhall, you are in fact renting it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are fewer than eighty years remaining. Residents in Grappenhall with a lease approaching 81 years unexpired should seriously think of extending it as soon as possible. Once the lease term has less than 80 years left, under the current legislation the landlord can calculate and charge a larger amount, based on a technical computation, known as “marriage value” which is payable.

An extended lease is almost the same value as a freehold

Leasehold properties in Grappenhall with more than one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.

Lenders may not issue a mortgage with a short lease

Most high street banks are making their criteria more stringent and many now require flats to have at least sixty if not seventy years remaining at the end of the mortgage. As a number of flats in Grappenhall were built in the fifties, sixties and seventies this means many now require lease extensions if they wish to get a mortgage.

Lender Requirement
Lloyds TSB Scotland Mortgage term plus 30 years subject to an overall minimum term of 70 years
National Westminster Bank Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower.
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. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower.
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.

Get in touch with one of our Grappenhall lease extension solicitors or enfranchisement solicitors

Regardless of whether you are a tenant or a freeholder in Grappenhall,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Grappenhall valuers.

Grappenhall Lease Extension Case Summaries:

Samuel, Grappenhall, Cheshire,

Samuel owned a high value flat in Grappenhall being sold with a lease of a few days over fifty eight years left. Samuel informally spoke with his landlord being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £125 per annum. Ordinarily, ground rent would not be due on a lease extension were Samuel to invoke his statutory right. Samuel procured expert advice and secured an acceptable resolution informally and readily saleable.

Grappenhall case:

Mr and Mrs. O Girard took over the lease of a one bedroom flat in Grappenhall in November 2009. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year lease extension. Similar properties in Grappenhall with a long lease were in the region of £285,000. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease expired on 9 January 2101. Having 80 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 plus fees.

Grappenhall case:

In 2011 we were contacted by Mr E Roberts who, having bought a purpose-built flat in Grappenhall in November 2010. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year lease extension. Similar properties in Grappenhall with 100 year plus lease were in the region of £200,800. The mid-range amount of ground rent was £65 invoiced quarterly. The lease expired in 2081. Given that there were 60 years outstanding we calculated the compensation to the landlord for the lease extension to be between £20,900 and £24,200 exclusive of fees.