Unfortunately that a Greystones residential lease is a wasting 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 Greystones property market.Where your lease has approximately ninety years left, you need to start considering a lease extension. If the number of years remaining slips 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 flat owners in Greystones will be able to extend under the legislation; however a conveyancer will be able to clarify whether you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the process.
Leasehold residencies in Greystones with over 100 years left 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 situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Engaging our service will provide you enhanced control over the value of your Greystones leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of eight months of protracted discussions with the landlord of her leasehold apartment in Greystones, Kirsty commenced the lease extension process just as her lease was nearing the crucial 80-year deadline. The legal work was finalised in June 2009. The landlord’s charges were kept to an absolute minimum.
Mr and Mrs. N Moreau purchased a purpose-built apartment in Greystones in June 2004. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Identical properties in Greystones with an extended lease were worth £210,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease ran out on 25 June 2105. Taking into account 80 years left we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus expenses.
Last Spring we were e-mailed by Mr Jasper Gray , who acquired a garden flat in Greystones in April 1999. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Similar residencies in Greystones with 100 year plus lease were worth £275,000. The mid-range amount of ground rent was £45 billed monthly. The lease expiry date was on 5 September 2094. Given that there were 69 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including professional charges.