Grimsby leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Most owners of residential leasehold property in Grimsby enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Grimsby you must check if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
Leasehold residencies in Grimsby with in excess of 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you better control over the value of your Grimsby leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Austin, came precariously near to the 80-year mark with the lease on his two bedroom flat in Grimsby. Having purchased his property 18 years previously, the unexpired term was of minimal bearing. Fortunately, he noticed he needed to take action soon on a lease extension. Austin arranged for a lease extension just under the wire in April. Austin and the freeholder ultimately agreed on sum of £5,500 . If he not met the deadline, the sum would have gone up by a minimum £975.
Dr Harriet Gómez owned a ground floor apartment in Grimsby in November 2007. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by ninety years. Comparative flats in Grimsby with an extended lease were worth £210,600. The mid-range amount of ground rent was £45 invoiced per annum. The lease finished in 2087. Given that there were 62 years outstanding we estimated the premium to the freeholder to extend the lease to be between £18,100 and £20,800 not including professional charges.
Mr Jayden Sánchez bought a garden flat in Grimsby in February 1995. The dilemma was if we could approximate the premium would likely be for a 90 year extension to my lease. Identical premises in Grimsby with a long lease were valued about £265,000. The mid-range amount of ground rent was £50 billed per annum. The lease expired on 17 June 2098. Given that there were 73 years unexpired we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including legals.