Grimsby residential property owned on a long lease is a wasting asset as the leaseholder merely owns the property for a set term.
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
The lawyers that we work with handle 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 lengthy negotiations with the freeholder of her leasehold flat in Grimsby, Jennifer commenced the lease extension process just as her lease was nearing the all-important 80-year mark. The lease extension was concluded in April 2011. The freeholder’s charges were kept to an absolute minimum.
Last month we were phoned by Ms Mia Díaz , who purchased a basement apartment in Grimsby in January 2012. The dilemma was if we could shed any light on how much (roughly) premium could be to prolong the lease by ninety years. Identical properties in Grimsby with 100 year plus lease were valued about £250,000. The average ground rent payable was £50 collected yearly. The lease elapsed on 19 September 2094. Having 69 years unexpired we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of fees.
Last Autumn we were e-mailed by Dr D Campbell , who moved into a studio apartment in Grimsby in February 1999. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Comparative properties in Grimsby with an extended lease were in the region of £290,000. The mid-range ground rent payable was £60 invoiced per annum. The lease concluded on 16 June 2105. Considering the 80 years unexpired we estimated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 not including legals.