With a domestic leasehold property in Grays, 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 lengthy period of time, you should consider a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater especially when there are less than 80 years left. Leasehold owners in Grays with a lease nearing 81 years unexpired should seriously think of extending it without delay. When the lease term has below 80 years remaining, under the relevant statute the freeholder is entitled to calculate and demand a larger amount, assessed on a technical calculation, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire Building Society | 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. |
Lease extensions in Grays can be a difficult process. We recommend you procure professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Grays lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Rory, came dangerously near to the 80-year threshold with the lease on his one bedroom flat in Grays. Having purchased his property two decades ago, the length of the lease was of no relevance. Thankfully, he realised he needed to take action soon on Extending the lease. Rory extended the lease at the eleventh hour last January. Rory and the freeholder in the end agreed on an amount of £5,500 . If the lease had dropped below 80 years, the sum would have gone up by at least £975.
Last November we were e-mailed by Dr B Miller , who purchased a garden apartment in Grays in February 2007. The dilemma was if we could estimate the price could be for a 90 year extension to my lease. Similar homes in Grays with an extended lease were in the region of £203,200. The mid-range amount of ground rent was £65 collected annually. The lease end date was in 2086. Considering the 61 years remaining we calculated the compensation to the freeholder for the lease extension to be between £19,000 and £22,000 exclusive of costs.
An example of a Lease Extension case for a Grays property is Various @ Colombus Square in January 2012. the Tribunal calculated the premiums to be paid for new leases for each of the flats in Mariners Walk to be £3822 and the premium to be paid for the new lease of 2 Knights Court to be £4439. This case was in relation to 13 flats. The unexpired lease term was 76 years.