Unfortunately that a Grasmere residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Grasmere property market.Once your lease gets to 85ish years, you should start considering 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 falls under eighty years - otherwise a higher amount will be payable. The majority of flat owners in Grasmere will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your conveyancer throughout the process.
Leasehold residencies in Grasmere with in excess of one hundred years unexpired on the lease are sometimes 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 purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Halifax | |
| Leeds Building Society | |
| National Westminster Bank | |
| The Mortgage Works |
The lawyers that we work with handle Grasmere lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Harry owned a high value apartment in Grasmere on the market with a lease of just over sixty years left. Harry informally spoke with his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £200 yearly. No ground rent would be payable on a lease extension were Harry to exercise his statutory right. Harry obtained expert advice and was able to make an informed judgement and deal with the matter and sell the property.
Last Christmas we were called by Dr D Martinez , who took over the lease of a one bedroom apartment in Grasmere in August 2012. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Identical residencies in Grasmere with a long lease were valued about £201,200. The average ground rent payable was £55 collected annually. The lease came to a finish on 20 August 2082. Considering the 56 years left we estimated the premium to the landlord to extend the lease to be between £31,400 and £36,200 exclusive of professional charges.
Last Spring we were phoned by Mrs Y White , who purchased a ground floor apartment in Grasmere in January 1997. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by 90 years. Comparative flats in Grasmere with 100 year plus lease were valued around £300,000. The average amount of ground rent was £50 invoiced per annum. The lease terminated in 2102. Taking into account 76 years left we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of professional charges.