For anyone whose Grasmere flat is held on a long lease, the message is clear – if nothing is done, your property will eventually revert to the freeholder, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease.
Leasehold properties in Grasmere with over one hundred years remaining on the lease are sometimes regarded as a ‘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 freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Lease extensions in Grasmere can be a difficult process. We recommend you get professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Grasmere lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Thomas, started to get close to the eighty-year threshold with the lease on his two bedroom flat in Grasmere. Having purchased his home twenty years ago, the lease term was of no bearing. As luck would have it, he recognised he needed to take action soon on Extending the lease. Thomas was able to extend his lease at the eleventh hour in May. Thomas and the freeholder via the management company eventually agreed on a premium of £5,500 . If he had missed the deadline, the figure would have escalated by at least £925.
Last Christmas we were contacted by Dr Jessica Rose , who took over the lease of a one bedroom flat in Grasmere in February 2004. We are asked if we could estimate the price would likely be for a ninety year lease extension. Comparable residencies in Grasmere with 100 year plus lease were in the region of £230,800. The average amount of ground rent was £60 invoiced annually. The lease came to a finish on 2 September 2085. Considering the 60 years outstanding we estimated the premium to the landlord for the lease extension to be within £24,700 and £28,600 exclusive of legals.
Last February we were phoned by Mr I Roberts , who owned a one bedroom flat in Grasmere in March 2006. The question was if we could estimate the price would be for a ninety year lease extension. Similar homes in Grasmere with 100 year plus lease were in the region of £210,000. The mid-range amount of ground rent was £50 collected quarterly. The lease terminated in 2105. Considering the 80 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 plus fees.