Grassendale leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Grassendale enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Grassendale you really ought to see if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under eighty years, the cost of any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
It is generally accepted that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Engaging our service gives you enhanced control over the value of your Grassendale leasehold, as your property will be more valuable and marketable in terms of lease length should you wish 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.
Nathan was the the leasehold owner of a studio flat in Grassendale being marketed with a lease of fraction over fifty eight years remaining. Nathan informally contacted his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Nathan to invoke his statutory right. Nathan procured expert advice and secured an acceptable resolution without going to tribunal and sell the property.
In 2013 we were phoned by Ms Robyn Bertrand who, having took over the lease of a recently refurbished apartment in Grassendale in August 2008. We are asked if we could shed any light on how much (approximately) price would likely be to prolong the lease by an additional years. Identical residencies in Grassendale with an extended lease were worth £181,600. The average ground rent payable was £55 billed every twelve months. The lease terminated in 2077. Taking into account 52 years outstanding we approximated the premium to the landlord to extend the lease to be between £30,400 and £35,200 not including expenses.
In 2014 we were e-mailed by Ms G Lefèvre who, having moved into a one bedroom flat in Grassendale in October 1995. We are asked if we could estimate the premium would be to prolong the lease by 90 years. Identical residencies in Grassendale with a long lease were in the region of £290,000. The mid-range ground rent payable was £45 collected annually. The lease ended on 15 February 2097. Having 72 years remaining we estimated the compensation to the landlord for the lease extension to be between £11,400 and £13,200 not including expenses.