The nearer a residential lease in Grasmere gets to zero years unexpired, the more it reduces the value of the property. If the lease has, in excess of 125 years to run then this decrease may be fractional nevertheless there will become a stage when a lease has under than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should consider extending sooner than later. Many flat owners in Grasmere will qualify for this right; nevertheless a conveyancing solicitor will be able to advise if you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold residencies in Grasmere with more than one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with handle Grasmere lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Subsequent to protracted discussions with the freeholder of her studio apartment in Grasmere, Kirsty started the lease extension process as the eighty year threshold was fast coming. The legal work was concluded in April 2007. The freeholder’s fees were kept to an absolute minimum.
In 2011 we were e-mailed by Dr Lauren Vincent who, having took over the lease of a one bedroom apartment in Grasmere in October 2002. The dilemma was if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Comparative premises in Grasmere with a long lease were worth £213,600. The mid-range ground rent payable was £60 invoiced monthly. The lease came to a finish on 14 July 2082. Considering the 57 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £30,400 and £35,200 exclusive of fees.
In 2012 we were called by Mr W Morel who, having bought a studio apartment in Grasmere in September 2007. The question was if we could estimate the premium would be for a 90 year lease extension. Comparable premises in Grasmere with 100 year plus lease were worth £200,000. The mid-range ground rent payable was £50 billed per annum. The lease came to a finish in 2102. Taking into account 77 years unexpired we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 plus expenses.