Main reasons to commence your Grays lease extension
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<h3> Top reasons for lease extension now:
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<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/grays">Grays</a> leasehold property depreciates with the years remaining on the lease.
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Grays leases on residential properties are gradually losing value. Where your lease has approximately ninety years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for the lease extension to be in place before the term of the current lease drops under eighty years - otherwise a higher amount will be payable. Flat owners in Grays will mostly qualify for a lease extension; however a solicitor will confirm if you qualify. In certain circumstances you may not qualify. There are prescribed deadlines and formalities to follow once the process is triggered so it’s wise to be guided by a lawyer during the process.
<h4>An extended lease is almost the same value as a freehold</h4>
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Leasehold residencies in Grays with in excess of 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 property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it. <h4>Mortgage lenders may not finance a property on a short lease</h4>
The trend since over the last decade has been for banks to tighten lending requirements across the board - this has extended to the types of security over which the mortgage is to be granted. This has meant the minimum number of years remaining under the lease required by banks has increased. In the past lenders were content with twenty years plus the term of the loan - routinely fifty year leases but those requirements evolved by the requirement for lengthy leases - many now have a minimum term of 75 years as standard.
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<tr><th>Lender</th>
<th> Requirement
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<td>Accord Mortgages</td>
<td> 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.
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<td>Barnsley Building Society</td>
<td> 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.
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<td>Coventry Building Society</td>
<td> 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.
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<td>Skipton Building Society</td>
<td> 85 years from the date of completion of the mortgage<br /><br />For Buy to Let cases:<br />- lettings must not breach any of the lessee’s covenants; and<br />- consent of the lessor to lettings must be obtained if necessary
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<td>Yorkshire Building Society</td>
<td> 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.
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Why use us for your lease extension in Grays? </h4>
<p> Irrespective of whether you are a tenant or a freeholder in Grays,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Grays valuers.
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Grays Lease Extension Example Cases:
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<h5> Victoria, Grays, Essex,</h5>
<p> Off the back of protracted correspondence with the landlord of her basement apartment in Grays, Victoria initiated the lease extension process as the eighty year mark was swiftly advancing. The lease extension was concluded in March 2009. The freeholder’s costs were negotiated to a tad over 600 pounds.
<h5>Grays case:</h5>
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In 2014 we were called by Mr and Mrs. F Nguyen who, having purchased a newly refurbished flat in Grays in July 2011. We are asked if we could approximate the price would be to prolong the lease by an additional years. Comparative premises in Grays with an extended lease were worth £176,200. The average amount of ground rent was £65 billed yearly. The lease expired in 2082. Considering the 56 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £29,500 and £34,000 exclusive of costs.
<div> <h5>Decision in Bexley</h5>
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An example of a Lease Extension matter before the tribunal 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 affected 13 flats. The unexpired residue of the current lease was 76 years.
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