There is no doubt about it a leasehold property in Grasmere is a wasting asset as a result of the shortening lease. Where the lease has, beyond 100 years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has less than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should consider extending without delay. The majority of flat owners in Grasmere will meet the qualifying criteria; however a lawyer can confirm 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 under two years.
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years left, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
Retaining our service will provide you enhanced control over the value of your Grasmere leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Hugo owned a high value flat in Grasmere on the market with a lease of a little over sixty years outstanding. Hugo informally spoke with his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 yearly. Ordinarily, ground rent would not be due on a lease extension were Hugo to invoke his statutory right. Hugo procured expert advice and was able to make an informed decision and deal with the matter and readily saleable.
Last Spring we were called by Dr E Vincent , who was assigned a lease of a one bedroom apartment in Grasmere in February 2011. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by ninety years. Identical flats in Grasmere with a long lease were valued about £196,400. The mid-range amount of ground rent was £55 collected quarterly. The lease elapsed in 2080. Considering the 54 years unexpired we estimated the premium to the landlord to extend the lease to be within £35,200 and £40,600 plus expenses.
Ms Aimee Lee was assigned a lease of a one bedroom apartment in Grasmere in May 2009. The question was if we could approximate the price would be for a ninety year lease extension. Comparable properties in Grasmere with an extended lease were worth £295,000. The average amount of ground rent was £45 billed monthly. The lease end date was on 26 November 2100. Having 74 years left we approximated the premium to the landlord for the lease extension to be within £8,600 and £9,800 plus expenses.