Unfortunately that a Grimsby residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Grimsby property prices.Once your lease gets to 85ish years, you should start considering a lease extension. If lease term slips under eighty years, you will then be required to pay 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 The majority of leasehold owners in Grimsby will be able to extend under the legislation; however a conveyancer will be able to confirm if you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
Leasehold properties in Grimsby with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit 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. |
| 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. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with undertake Grimsby 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.
In 2014 Evan, came critically near to the eighty-year threshold with the lease on his two bedroom apartment in Grimsby. In buying his home two decades ago, the unexpired term was of no bearing. Thankfully, it dawned on him that he would soon be paying way over the odds for a lease extension. Evan extended the lease at the eleventh hour last September. Evan and the freeholder via the management company eventually agreed on the final figure of £6,000 . If the lease had descended to less than eighty years, the premium would have gone up by at least £975.
Mr and Mrs. A Robinson acquired a basement apartment in Grimsby in August 2000. The question was if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Identical premises in Grimsby with a long lease were in the region of £183,600. The average ground rent payable was £65 billed quarterly. The lease concluded in 2082. Given that there were 57 years unexpired we approximated the premium to the landlord for the lease extension to be between £28,500 and £33,000 exclusive of professional charges.
Ms W Bonnet moved into a one bedroom apartment in Grimsby in October 2001. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by 90 years. Similar residencies in Grimsby with a long lease were in the region of £245,000. The mid-range ground rent payable was £50 collected annually. The lease termination date was on 4 October 2093. Considering the 68 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including professional charges.