Grasmere leases on residential deteriorating in value. Where your lease has in the region of ninety years left, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease dips below this level then you begin incurring an additional element called marriage value. Flat owners in Grasmere will usually qualify for a lease extension; however it’s a good idea to check with a conveyancer to check your eligibility. In certain cases you may not qualify. There are also strict deadlines and steps to follow once the process is initiated so it’s sensible to be guided by a conveyancing solicitor during the process.
It is generally accepted that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Coventry Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you enhanced 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 conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following unsuccessful correspondence with the landlord of her ground floor flat in Grasmere, Lydia commenced the lease extension process just as her lease was nearing the all-important eighty-year threshold. The transaction completed in March 2010. The freeholder’s charges were negotiated to about 650 pounds.
Last month we were called by Dr Sarah Mason , who acquired a ground floor flat in Grasmere in October 2009. We are asked if we could approximate the price would likely be to extend the lease by ninety years. Comparable properties in Grasmere with a long lease were valued around £210,000. The average ground rent payable was £50 billed per annum. The lease terminated on 2 February 2105. Having 80 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including professional charges.
Last Winter we were phoned by Dr M Watson , who moved into a studio flat in Grasmere in February 1997. The dilemma was if we could estimate the premium could be to prolong the lease by a further 90 years. Similar properties in Grasmere with a long lease were in the region of £280,000. The mid-range ground rent payable was £45 invoiced annually. The lease ended in 2094. Having 69 years outstanding we calculated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of professional charges.