As the length of the unexpired term of a Grays residential lease decreases so does its value and therefore the value of your property. If the lease has, beyond 125 years remaining then this decrease may be negligible however there will become a point in time when a lease has fewer than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should consider extending sooner as opposed to later. The majority of flat owners in Grays will meet the qualifying criteria; nevertheless a conveyancer can advise whether you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Grays can be a difficult process. We recommend you obtain professional help from a lawyer 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.
Following protracted negotiations with the landlord of her garden flat in Grays, Isabelle commenced the lease extension process just as her lease was nearing the all-important eighty-year deadline. The lease extension was finalised in April 2013. The freeholder’s costs were kept to an absolute minimum.
In 2013 we were called by Dr J Roux who, having completed a first floor flat in Grays in June 1999. The dilemma was if we could estimate the premium would likely be to prolong the lease by a further 90 years. Comparative premises in Grays with an extended lease were worth £255,000. The mid-range amount of ground rent was £50 invoiced annually. The lease terminated on 4 January 2097. Taking into account 71 years unexpired we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of fees.
An example of a Lease Extension case for a Grays residence 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 term was 76 years.