Unfortunately that a Greasby residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Greasby property market.Once your lease nears 85ish years, you need to start considering a lease extension. If lease term falls under 80 years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most leasehold owners in Greasby will be able to extend under the legislation; however a conveyancer will be able to clarify if you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor for the duration of the process.
Leasehold residencies in Greasby with more than 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 Greasby can be a difficult process. We recommend you secure professional help from a conveyancing solicitor 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 in-depth market knowledge dealing with Greasby lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After unsuccessful discussions with the landlord of her ground floor flat in Greasby, Robyn commenced the lease extension process just as the lease was nearing the all-important eighty-year threshold. The legal work completed in February 2006. The freeholder’s charges were kept to an absolute minimum.
Last month we were phoned by Mr and Mrs. S Bailey , who was assigned a lease of a one bedroom flat in Greasby in July 1996. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by an additional years. Identical homes in Greasby with an extended lease were in the region of £264,000. The average amount of ground rent was £60 collected quarterly. The lease came to a finish on 21 June 2078. Given that there were 53 years remaining we calculated the compensation to the freeholder to extend the lease to be between £37,100 and £42,800 exclusive of expenses.
Last Christmas we were contacted by Mr and Mrs. A Mitchell , who owned a garden apartment in Greasby in January 2004. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by 90 years. Comparable properties in Greasby with an extended lease were in the region of £225,400. The average amount of ground rent was £45 billed monthly. The lease finished on 6 August 2089. Considering the 64 years left we calculated the premium to the freeholder for the lease extension to be between £16,200 and £18,600 plus costs.