The market value of Grasmere leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase significantly once the unexpired lease term is less than eighty years
Leasehold properties in Grasmere with over one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Engaging our service gives you better control over the value of your Grasmere leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Kian, came very close to the 80-year threshold with the lease on his leasehold apartment in Grasmere. In buying his flat twenty years ago, the length of the lease was of no bearing. by good luck, he noticed he needed to take steps soon on a lease extension. Kian was able to extend his lease just under the wire last April. Kian and the freeholder via the managing agents eventually settled on an amount of £5,500 . If he not met the deadline, the amount would have become more costly by at least £1,125.
Ms G Patel took over the lease of a garden apartment in Grasmere in April 2003. The question was if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Identical residencies in Grasmere with an extended lease were in the region of £257,800. The mid-range amount of ground rent was £65 collected quarterly. The lease came to a finish on 22 January 2091. Given that there were 65 years outstanding we calculated the premium to the landlord to extend the lease to be between £18,100 and £20,800 exclusive of fees.
In 2009 we were contacted by Mr and Mrs. B Garcia who, having owned a ground floor flat in Grasmere in March 2000. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Identical homes in Grasmere with an extended lease were valued around £196,400. The average amount of ground rent was £55 billed yearly. The lease expired on 15 June 2080. Taking into account 54 years remaining we estimated the premium to the freeholder for the lease extension to be within £35,200 and £40,600 exclusive of professional charges.