There is no doubt about it a leasehold property in Grasmere is a wasting asset as a result of the diminishing lease term. Where the residual term has, beyond 99 years remaining then this decrease may be of little impact that being said there will become a stage when a lease has less than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should consider extending sooner as opposed to later. Many flat owners in Grasmere will qualify for this right; nevertheless a conveyancer will be able to advise if you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Grasmere,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Grasmere valuers.
18 months ago Owen, came very close to the 80-year mark with the lease on his two bedroom apartment in Grasmere. In buying his flat two decades ago, the unexpired term was of minimal importance. As luck would have it, he became aware that he would imminently be paying an inflated amount for Extending the lease. Owen was able to extend his lease just under the wire last July. Owen and the freeholder via the managing agents eventually agreed on sum of £6,000 . If the lease had fallen lower than 80 years, the price would have escalated by at least £850.
In 2012 we were called by Mrs J Morgan who, having acquired a basement apartment in Grasmere in September 2004. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Comparable flats in Grasmere with an extended lease were valued around £290,000. The average ground rent payable was £45 billed yearly. The lease lapsed in 2097. Having 72 years remaining we estimated the compensation to the freeholder to extend the lease to be within £11,400 and £13,200 exclusive of professional charges.
Dr N Michel bought a one bedroom flat in Grasmere in June 2004. The dilemma was if we could estimate the premium would likely be for a ninety year extension to my lease. Identical properties in Grasmere with an extended lease were worth £233,200. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease expiry date was in 2086. Having 61 years left we approximated the premium to the landlord for the lease extension to be within £22,800 and £26,400 plus fees.