With a residential leasehold premises in Grappenhall, you effectively rent it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are less than 80 years remaining. Anyone in Grappenhall with a lease nearing 81 years unexpired should seriously consider extending it sooner than later. Once the lease term has fewer than eighty years left, under the relevant Act the freeholder is entitled to calculate and charge a larger amount, based on a technical calculation, known as “marriage value” which is payable.
It is generally considered that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
The lawyers that we work with procure 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 conveyancing solicitor we work with provide it.
Jacob was the the leasehold owner of a studio flat in Grappenhall on the market with a lease of just over sixty years unexpired. Jacob informally contacted his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jacob to invoke his statutory right. Jacob obtained expert legal guidance and was able to make an informed decision and handle with the matter and ending up with a market value flat.
In 2014 we were e-mailed by Dr A Torres who, having moved into a first floor apartment in Grappenhall in May 2010. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year lease extension. Comparable flats in Grappenhall with a long lease were valued around £200,800. The average ground rent payable was £65 collected yearly. The lease ran out on 24 November 2084. Considering the 60 years unexpired we calculated the premium to the landlord to extend the lease to be between £20,900 and £24,200 plus legals.
Mrs F Smith bought a first floor flat in Grappenhall in September 2002. The dilemma was if we could shed any light on how much (approximately) price would likely be for a ninety year extension to my lease. Similar homes in Grappenhall with an extended lease were worth £260,000. The average amount of ground rent was £50 collected yearly. The lease expired in 2095. Having 71 years remaining we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including expenses.