Grappenhall leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. The majority of owners of residential leasehold property in Grappenhall enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Grappenhall you must check if your lease has between seventy and ninety years remaining. There are compelling reasons why a Grappenhall leaseholder with a lease having around eighty years left should take steps to make sure that a lease extension is effected without delay
Leasehold residencies in Grappenhall with more than one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with handle 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 lawyer we work with provide it.
Following protracted negotiations with the landlord of her purpose-built apartment in Grappenhall, Isabelle initiated the lease extension process as the 80 year mark was quickly advancing. The legal work completed in July 2008. The landlord’s charges were kept to an absolute minimum.
Mr and Mrs. D Rivera purchased a first floor flat in Grappenhall in November 2008. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by an additional years. Comparative properties in Grappenhall with an extended lease were worth £225,400. The mid-range amount of ground rent was £45 invoiced monthly. The lease terminated on 6 September 2090. Given that there were 64 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £16,200 and £18,600 exclusive of legals.
In 2012 we were called by Mr and Mrs. F Smith who, having was assigned a lease of a first floor apartment in Grappenhall in November 2001. We are asked if we could approximate the premium would be to prolong the lease by an additional years. Comparative homes in Grappenhall with 100 year plus lease were worth £270,000. The average amount of ground rent was £55 collected monthly. The lease lapsed on 17 June 2101. Taking into account 75 years left we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including expenses.