Grasmere leases on domestic deteriorating in value. if your lease has in the region of ninety years unexpired, you should start considering the need for a lease extension. If lease term is under 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Grasmere will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to confirm if you qualify. In certain circumstances you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced so it’s best to be guided by a conveyancer during the process.
Leasehold residencies in Grasmere with over 100 years left 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 upside in purchasing the freehold unless savings on ground rent and estate charges merit it.
|Birmingham Midshires||Minimum 70 years from the date of the mortgage.|
|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.|
|National Westminster Bank||Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower.|
|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.
|Yorkshire 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.|
Using our service will provide you better control over the value of your Grasmere leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Gabriel, started to get close to the 80-year threshold with the lease on his purpose- built flat in Grasmere. Having bought his property two decades ago, the lease term was of minimal concern. Fortunately, he noticed he needed to take action soon on a lease extension. Gabriel extended the lease just under the wire last May. Gabriel and the landlord who owned the flat above subsequently settled on a premium of £5,000 . If he not met the deadline, the premium would have become more costly by at least £925.
Dr K Nguyen moved into a purpose-built apartment in Grasmere in March 2012. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparable residencies in Grasmere with a long lease were in the region of £267,600. The mid-range amount of ground rent was £65 invoiced quarterly. The lease elapsed in 2088. Having 67 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £14,300 and £16,400 exclusive of fees.
In 2013 we were approached by Mr and Mrs. W Mercier who, having bought a studio apartment in Grasmere in April 2002. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Identical properties in Grasmere with a long lease were in the region of £206,200. The average amount of ground rent was £55 invoiced yearly. The lease terminated in 2077. Given that there were 56 years remaining we calculated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 not including professional charges.