Grappenhall leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Grappenhall residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Grappenhall you really ought to see if your lease has between 70 and 90 years remaining. There are good reasons why a Grappenhall flat owner with a lease having around 80 years unexpired should take steps to ensure that a lease extension is put in place without delay
Leasehold residencies in Grappenhall with in excess of 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 reversionary interest unless savings on ground rent and maintenance charges merit it.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
The conveyancing solicitors 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 conveyancer we work with provide it.
Off the back of unsuccessful correspondence with the freeholder of her basement flat in Grappenhall, Jennifer commenced the lease extension process just as the lease was approaching the critical 80-year mark. The transaction was concluded in October 2011. The freeholder’s fees were restricted to less than 450 GBP.
In 2012 we were e-mailed by Mr Sam Rodríguez who, having was assigned a lease of a newly refurbished apartment in Grappenhall in November 2009. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by a further 90 years. Comparative homes in Grappenhall with 100 year plus lease were valued around £246,800. The mid-range ground rent payable was £60 invoiced annually. The lease terminated on 3 January 2076. Given that there were 50 years unexpired we estimated the compensation to the landlord for the lease extension to be between £44,700 and £51,600 not including expenses.
In 2010 we were approached by Mr and Mrs. G Watson who, having was assigned a lease of a studio apartment in Grappenhall in October 2011. The dilemma was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar premises in Grappenhall with an extended lease were in the region of £208,200. The average ground rent payable was £65 collected quarterly. The lease end date was on 11 May 2087. Having 61 years unexpired we calculated the premium to the landlord to extend the lease to be within £20,000 and £23,000 plus professional charges.