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.
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.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 |
| 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. |
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.
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.
In 2014 we were called by Mr and Mrs. F Nguyen who, having purchased a newly refurbished flat in Grays in July 2008. 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.
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.