Chances are that if you own a flat in Grenoside you actually own a long leasehold interest over your property
Leasehold properties in Grenoside with more than one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with procure Grenoside lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Following lengthy correspondence with the freeholder of her two bedroom flat in Grenoside, Charlotte started the lease extension process as the eighty year deadline was fast approaching. The transaction was concluded in October 2014. The landlord’s costs were negotiated to under 500 pounds.
Mr and Mrs. D Lambert owned a ground floor apartment in Grenoside in July 2011. The dilemma was if we could shed any light on how much (roughly) price would likely be to extend the lease by a further 90 years. Comparative properties in Grenoside with a long lease were worth £300,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease lapsed on 23 September 2102. Having 76 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 plus costs.
Last month we were approach by Mr and Mrs. N Bertrand , who was assigned a lease of a purpose-built flat in Grenoside in June 2003. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Comparative properties in Grenoside with an extended lease were valued around £257,800. The mid-range amount of ground rent was £65 collected every twelve months. The lease elapsed in 2091. Having 65 years as a residual term we approximated the premium to the landlord for the lease extension to be between £18,100 and £20,800 not including legals.