Top reasons for Grasmere lease extension

Top reasons for lease extension now:

Increase your lease and increase your Grasmere property value

Grasmere leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. It is the case that most Grasmere tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Grasmere you would be well advised to see if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value

Grasmere property with a lease extension has roughly the same value as a freehold

Leasehold residencies in Grasmere with in excess of 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.

Lending institutions may not lend on a short lease

Many banks and building societies will be unwilling to lend on a lease with less than 70 years unexpired - although this varies from lender to lender. A buyer will undoubtedly encounter difficulties in obtaining a mortgage and this could result in your Grasmere property becoming difficult to sell or remortgage.

Why use us for your lease extension in Grasmere?

Retaining our service gives you better control over the value of your Grasmere leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Grasmere Lease Extension Example Cases:

Harvey, Grasmere, Cumbria

Half a year ago Harvey, started to get near to the eighty-year threshold with the lease on his basement flat in Grasmere. In buying his home 19 years previously, the lease term was of no bearing. As luck would have it, it dawned on him that he needed to take steps soon on a lease extension. Harvey arranged for a lease extension just ahead of time last June. Harvey and the landlord who owned the flat above eventually settled on the final figure of £5,000 . If he failed to meet the deadline, the amount would have gone up by a minimum £1,100.

Grasmere case:

Last Summer we were contacted by Dr Harry Martinez , who took over the lease of a ground floor flat in Grasmere in April 2009. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Comparable homes in Grasmere with a long lease were valued around £225,800. The mid-range ground rent payable was £60 billed yearly. The lease ran out on 7 January 2086. Given that there were 60 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £25,700 and £29,600 plus fees.

Grasmere case:

In 2009 we were approached by Ms L Johnson who, having completed a one bedroom flat in Grasmere in February 2003. We are asked if we could estimate the premium would likely be for a ninety year lease extension. Identical properties in Grasmere with a long lease were valued around £210,000. The average ground rent payable was £50 collected annually. The lease expired on 3 July 2106. Taking into account 80 years left we estimated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of fees.