It’s an underpublicised certainty that a Griffithstown residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Griffithstown property market.Where your lease has approximately 90 years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than eighty years - otherwise a higher amount will be payable. Most leasehold owners in Griffithstown will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer for the duration of the process.
It is generally considered that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Griffithstown,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Griffithstown valuers.
Subsequent to lengthy negotiations with the freeholder of her ground floor flat in Griffithstown, Yasmin started the lease extension process as the eighty year threshold was fast nearing. The transaction was finalised in July 2011. The freeholder’s charges were restricted to under 550 GBP.
In 2013 we were e-mailed by Mr and Mrs. R Rogers who, having was assigned a lease of a one bedroom flat in Griffithstown in August 1995. We are asked if we could shed any light on how much (approximately) price would be to prolong the lease by a further 90 years. Comparative flats in Griffithstown with an extended lease were in the region of £243,000. The average amount of ground rent was £65 collected yearly. The lease finished on 13 November 2089. Having 63 years left we approximated the premium to the landlord for the lease extension to be within £20,000 and £23,000 plus expenses.
Dr V González purchased a basement flat in Griffithstown in October 2004. We are asked if we could estimate the compensation to the landlord would be for a 90 year lease extension. Identical flats in Griffithstown with 100 year plus lease were in the region of £181,600. The mid-range amount of ground rent was £55 collected yearly. The lease expired on 26 September 2078. Having 52 years outstanding we estimated the premium to the freeholder for the lease extension to be within £30,400 and £35,200 exclusive of fees.