Chances are that where you own a flat in Grenoside you actually own a long leasehold interest over your property
Leasehold premises in Grenoside with in excess of 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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. |
Retaining our service gives you better control over the value of your Grenoside leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Archie, came dangerously close to the 80-year mark with the lease on his purpose- built apartment in Grenoside. Having bought his flat two decades ago, the length of the lease was of no concern. Fortunately, he recognised he would imminently be paying way over the odds for a lease extension. Archie extended the lease just in the nick of time last July. Archie and the landlord subsequently agreed on an amount of £5,000 . If the lease had dipped below eighty years, the premium would have increased by at least £1,050.
Last month we were contacted by Dr R García , who purchased a basement apartment in Grenoside in September 1995. We are asked if we could estimate the premium would be to extend the lease by 90 years. Similar premises in Grenoside with 100 year plus lease were valued around £267,600. The mid-range ground rent payable was £65 invoiced quarterly. The lease lapsed in 2092. Considering the 67 years unexpired we approximated the compensation to the landlord to extend the lease to be within £14,300 and £16,400 plus costs.
Last year we were contacted by Ms Georgina García , who acquired a recently refurbished apartment in Grenoside in February 2004. The dilemma was if we could approximate the compensation to the landlord would be to extend the lease by a further 90 years. Comparable homes in Grenoside with an extended lease were valued around £206,200. The mid-range amount of ground rent was £60 collected every twelve months. The lease ran out in 2081. Given that there were 56 years unexpired we calculated the premium to the landlord to extend the lease to be between £31,400 and £36,200 plus costs.