Grimsby leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Legislation has been in place for sometime now which permits qualifying Grimsby residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Grimsby you must investigate if your lease has between seventy and ninety years remaining. There are good reasons why a Grimsby leaseholder with a lease having around eighty years unexpired should take action to ensure that a lease extension is actioned without delay
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors 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.
Off the back of unsuccessful negotiations with the freeholder of her leasehold apartment in Grimsby, Amy started the lease extension process just as the lease was nearing the critical eighty-year deadline. The transaction was finalised in February 2005. The freeholder’s fees were kept to an absolute minimum.
In 2013 we were approached by Ms P Mitchell who, having moved into a garden apartment in Grimsby in November 2003. The question was if we could estimate the price would likely be for a ninety year lease extension. Identical homes in Grimsby with a long lease were valued around £275,000. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease ran out on 26 September 2102. Considering the 76 years unexpired we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of expenses.
In 2010 we were called by Ms Abbie Baker who, having bought a garden flat in Grimsby in October 2003. The question was if we could approximate the premium could be for a 90 year extension to my lease. Comparable flats in Grimsby with a long lease were worth £176,200. The mid-range ground rent payable was £65 invoiced yearly. The lease terminated in 2082. Given that there were 56 years left we estimated the compensation to the freeholder for the lease extension to be within £29,500 and £34,000 not including fees.