There is no doubt about it a leasehold flat or house in Grasmere is a wasting asset as a result of the shortening lease. If the residual term has, in excess of 125 years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has under than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary reason why you should consider extending without delay. Many flat owners in Grasmere will meet the qualifying criteria; that being said a conveyancer can advise if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold premises in Grasmere with more than 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you increased control over the value of your Grasmere leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Joseph owned a 2 bedroom apartment in Grasmere being marketed with a lease of a few days over 61 years unexpired. Joseph on an informal basis spoke with his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Joseph to exercise his statutory right. Joseph obtained expert advice and secured an acceptable deal informally and readily saleable.
Last Autumn we were phoned by Ms R Khan , who purchased a basement apartment in Grasmere in September 1996. We are asked if we could estimate the price would be for a ninety year lease extension. Comparable flats in Grasmere with a long lease were in the region of £233,200. The average ground rent payable was £60 billed yearly. The lease concluded on 17 April 2086. Given that there were 61 years outstanding we calculated the compensation to the landlord for the lease extension to be within £22,800 and £26,400 not including costs.
Mr and Mrs. J Johnson moved into a one bedroom flat in Grasmere in August 1995. The dilemma was if we could estimate the premium could be to prolong the lease by ninety years. Comparable properties in Grasmere with an extended lease were valued around £171,800. The mid-range amount of ground rent was £55 billed per annum. The lease elapsed in 2075. Having 50 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £32,300 and £37,400 exclusive of professional charges.