Unfortunately that a Grasmere residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Grasmere property prices.Once your lease nears 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below eighty years - otherwise a higher amount will be due. The majority of flat owners in Grasmere will be able to extend under the legislation; however a lawyer will be able to clarify if you are eligibility. In some cases you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the process.
Leasehold premises in Grasmere with over 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Lease extensions in Grasmere can be a difficult process. We recommend you get guidance from a lawyer and valuer 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 dealing with 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 lengthy negotiations with the landlord of her leasehold apartment in Grasmere, Freya commenced the lease extension process as the eighty year threshold was rapidly nearing. The lease extension was finalised in April 2006. The freeholder’s costs were kept to an absolute minimum.
Last Winter we were contacted by Dr Elizabeth Stewart , who completed a first floor flat in Grasmere in March 2007. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by a further 90 years. Similar premises in Grasmere with 100 year plus lease were valued around £171,800. The average ground rent payable was £55 invoiced yearly. The lease ended on 8 January 2076. Considering the 50 years as a residual term we calculated the premium to the landlord for the lease extension to be within £33,300 and £38,400 exclusive of professional charges.
Last month we were e-mailed by Dr Phoebe Rose , who purchased a basement flat in Grasmere in February 2003. We are asked if we could estimate the price would be for a 90 year lease extension. Comparable premises in Grasmere with a long lease were worth £280,000. The average ground rent payable was £45 collected annually. The lease terminated on 19 October 2096. Given that there were 70 years remaining we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including professional charges.