Grasmere leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Grasmere residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Grasmere you would be well advised to check if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Grasmere can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and surveyor with experience in lease extensions.
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 procuring Grasmere lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following protracted negotiations with the landlord of her two bedroom flat in Grasmere, Ella started the lease extension process as the 80 year threshold was quickly nearing. The transaction was finalised in June 2013. The freeholder’s costs were restricted to under 500 GBP.
In 2013 we were contacted by Mr and Mrs. T Lefebvre who, having completed a garden apartment in Grasmere in July 2000. The dilemma was if we could shed any light on how much (roughly) premium would be to extend the lease by an additional years. Comparable properties in Grasmere with 100 year plus lease were valued about £280,000. The average amount of ground rent was £45 collected yearly. The lease ended in 2096. Considering the 70 years outstanding we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 plus expenses.
Last month we were e-mailed by Dr W Anderson , who owned a one bedroom flat in Grasmere in April 2012. The question was if we could estimate the compensation to the landlord would be for a 90 year lease extension. Comparable homes in Grasmere with 100 year plus lease were in the region of £225,800. The mid-range ground rent payable was £60 billed yearly. The lease concluded in 2086. Taking into account 60 years as a residual term we approximated the premium to the landlord for the lease extension to be within £25,700 and £29,600 plus professional charges.