With a residential leasehold premises in Grassendale, you effectively rent it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive especially when there are fewer than eighty years left. Anyone in Grassendale with a lease approaching 81 years unexpired should seriously think of extending it as soon as possible. Once a lease has under eighty years outstanding, under the current Act the landlord is entitled to calculate and levy a larger amount, assessed on a technical computation, known as “marriage value” which is due.
Leasehold premises in Grassendale with more than 100 years remaining on the lease are sometimes regarded as a ‘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 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you enhanced control over the value of your Grassendale leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Ethan, came precariously close to the eighty-year threshold with the lease on his first floor apartment in Grassendale. Having bought his home 18 years previously, the lease term was of no concern. Fortunately, he became aware that he needed to take action soon on a lease extension. Ethan extended the lease just in the nick of time in July. Ethan and the landlord who owned the flat above eventually agreed on a premium of £6,000 . If the lease had slipped below eighty years, the figure would have gone up by at least £925.
In 2010 we were e-mailed by Dr V Ricardo who, having moved into a studio flat in Grassendale in March 2008. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparative homes in Grassendale with a long lease were worth £240,600. The mid-range ground rent payable was £60 billed per annum. The lease ran out in 2088. Taking into account 62 years as a residual term we calculated the premium to the landlord for the lease extension to be within £21,900 and £25,200 not including expenses.
In 2009 we were phoned by Dr P Bennett who, having moved into a basement apartment in Grassendale in March 2001. The question was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Similar flats in Grassendale with 100 year plus lease were valued about £174,200. The average ground rent payable was £55 collected every twelve months. The lease ran out in 2077. Having 51 years unexpired we estimated the premium to the landlord for the lease extension to be between £31,400 and £36,200 not including expenses.