Main reasons to commence your Grasmere lease extension

Main reasons to start your Grasmere lease extension today:

A Grasmere leasehold property depreciates with the years remaining on the lease.

When it comes to residential leasehold property in Grasmere, you are actually buying an entitlement to reside in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater especially once there are less than 80 years left. Leasehold owners in Grasmere with a lease approaching 81 years remaining should seriously think of extending it without delay. Once a lease has less than 80 years remaining, under the current statute the freeholder can calculate and demand a greater premium, based on a technical calculation, strangely termed as “marriage value” which is due.

Grasmere property with a lease extension has roughly the same value as a freehold

Leasehold properties in Grasmere with in excess of 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.

Banks and Building Societies may not grant a mortgage with a short lease

Banks and Building Societies have specific criteria when lending monies charged on leasehold property. Many will simply refuse lend at all once an unexpired lease term goes lower than a specified unexpired lease term. Many Banks and Building Societies will not consider property with a remaining below 75 years as acceptable security. As well as impacting your ability to sell, it is also relevant if you are intending to remortgage your Grasmere home.

Get in touch with one of our Grasmere lease extension solicitors or enfranchisement solicitors

Irrespective of whether you are a tenant or a freeholder in Grasmere,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Grasmere valuers.

Grasmere Lease Extension Example Cases:

Isabel, Grasmere, Cumbria,

After unsuccessful correspondence with the landlord of her one bedroom flat in Grasmere, Isabel commenced the lease extension process as the 80 year threshold was rapidly nearing. The legal work completed in April 2008. The freeholder’s costs were kept to an absolute minimum.

Grasmere case:

Ms J González moved into a purpose-built flat in Grasmere in May 1997. The question was if we could estimate the premium could be to extend the lease by ninety years. Identical flats in Grasmere with an extended lease were worth £250,400. The mid-range ground rent payable was £65 billed quarterly. The lease lapsed in 2090. Considering the 64 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £19,000 and £22,000 plus legals.

Grasmere case:

Ms Ella García owned a studio apartment in Grasmere in October 2008. We are asked if we could estimate the premium would likely be to prolong the lease by ninety years. Comparable properties in Grasmere with an extended lease were valued around £184,000. The mid-range ground rent payable was £55 collected annually. The lease lapsed in 2079. Having 53 years left we calculated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 plus costs.