Grassendale 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 gets more expensive. Legislation has been in place for sometime now which permits qualifying Grassendale residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Grassendale you really ought to investigate if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
Leasehold properties in Grassendale with more than one hundred 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 home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Irrespective of whether you are a tenant or a freeholder in Grassendale,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Grassendale valuers.
Ryan was the the leasehold owner of a 2 bedroom apartment in Grassendale on the market with a lease of a few days over fifty eight years left. Ryan informally spoke with his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Ryan to exercise his statutory right. Ryan obtained expert legal guidance and was able to make an informed judgement and handle with the matter and sell the property.
Ms Niamh King was assigned a lease of a ground floor flat in Grassendale in June 2011. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparative properties in Grassendale with a long lease were valued about £267,600. The average ground rent payable was £65 collected every twelve months. The lease expiry date was on 2 August 2093. Taking into account 67 years remaining we estimated the premium to the freeholder for the lease extension to be within £14,300 and £16,400 plus fees.
In 2013 we were contacted by Mr J Davies who, having bought a ground floor flat in Grassendale in September 2012. We are asked if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Comparable residencies in Grassendale with a long lease were in the region of £206,200. The average amount of ground rent was £60 collected annually. The lease finished in 2082. Taking into account 56 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 exclusive of legals.