With a long leasehold premises in Grasmere, you effectively rent it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater notably once there are less than 80 years remaining. Anyone in Grasmere with a lease approaching 81 years left should seriously consider extending it as soon as possible. When the lease term has less than 80 years left, under the current Act the freeholder can calculate and levy a greater premium, based on a technical multiplication, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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 also be not less than 75 years at the outset of the mortgage. |
The conveyancing solicitors that we work with undertake 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.
Following lengthy discussions with the freeholder of her one bedroom apartment in Grasmere, Samantha commenced the lease extension process as the eighty year mark was quickly approaching. The lease extension completed in November 2014. The landlord’s charges were kept to an absolute minimum.
Mr and Mrs. Y Petit owned a ground floor apartment in Grasmere in September 2010. We are asked if we could estimate the price could be for a 90 year extension to my lease. Comparable residencies in Grasmere with 100 year plus lease were worth £189,000. The mid-range ground rent payable was £55 collected yearly. The lease ended in 2078. Taking into account 53 years unexpired we approximated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of expenses.
Dr J Davies owned a studio flat in Grasmere in September 2002. We are asked if we could approximate the price could be for a ninety year lease extension. Comparative homes in Grasmere with an extended lease were worth £290,000. The mid-range amount of ground rent was £45 billed per annum. The lease termination date was on 4 November 2098. Taking into account 73 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus legals.