Grimsby leases on domestic deteriorating in value. if your lease has approximately 90 years unexpired, you should start thinking about a lease extension. If lease term is under eighty years, you will then be required to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Grimsby will mostly qualify for a lease extension; however a solicitor should be able confirm your eligibility. In some cases you may not be entitled. There are prescribed timetables and procedures to follow once the process has commenced so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold properties in Grimsby with over 100 years unexpired 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 property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service gives 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 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.
After unsuccessful discussions with the freeholder of her first floor apartment in Grimsby, Louise started the lease extension process as the 80 year mark was fast nearing. The transaction was concluded in August 2006. The landlord’s charges were restricted to below 550 GBP.
Last year we were e-mailed by Mr V Brooks , who moved into a basement flat in Grimsby in August 2008. The dilemma was if we could estimate the premium would be for a 90 year lease extension. Similar residencies in Grimsby with an extended lease were valued around £261,600. The average amount of ground rent was £60 billed quarterly. The lease expiry date was in 2078. Given that there were 52 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £39,000 and £45,000 plus professional charges.
In 2014 we were e-mailed by Dr Madeleine Lee who, having acquired a first floor flat in Grimsby in February 2007. The question was if we could shed any light on how much (roughly) premium could be to extend the lease by 90 years. Comparable premises in Grimsby with an extended lease were in the region of £218,000. The average amount of ground rent was £45 collected annually. The lease expiry date was on 17 January 2089. Considering the 63 years unexpired we approximated the premium to the landlord to extend the lease to be within £17,100 and £19,800 not including professional charges.