When it comes to domestic leasehold property in Grenoside, you are in fact renting it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are less than eighty years left. Anyone in Grenoside with a lease nearing 81 years left should seriously think of extending it as soon as possible. Once a lease has below 80 years remaining, under the current statute the freeholder can calculate and levy a greater amount, assessed on a technical multiplication, known as “marriage value” which is payable.
It is generally accepted that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service gives you enhanced control over the value of your Grenoside leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jake was the the leasehold proprietor of a conversion apartment in Grenoside on the market with a lease of fraction over 72 years outstanding. Jake informally approached his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Jake to exercise his statutory right. Jake procured expert legal guidance and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
In 2014 we were called by Mr and Mrs. K Bertrand who, having completed a ground floor apartment in Grenoside in October 1997. We are asked if we could estimate the price could be for a ninety year extension to my lease. Identical properties in Grenoside with 100 year plus lease were valued about £181,600. The average amount of ground rent was £55 invoiced every twelve months. The lease finished in 2078. Taking into account 52 years left we approximated the premium to the freeholder for the lease extension to be within £30,400 and £35,200 exclusive of expenses.
In 2014 we were contacted by Mr and Mrs. P Williams who, having owned a one bedroom apartment in Grenoside in August 2007. We are asked if we could approximate the price would likely be to extend the lease by an additional years. Similar residencies in Grenoside with an extended lease were worth £290,000. The average ground rent payable was £45 invoiced per annum. The lease ran out in 2098. Having 72 years left we calculated the premium to the freeholder for the lease extension to be within £11,400 and £13,200 exclusive of legals.