When it comes to long leasehold property in Groby and Ratby, you are in fact renting it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are fewer than eighty years remaining. Leasehold owners in Groby and Ratby with a lease drawing near to 81 years remaining should seriously consider extending it as soon as possible. Once the lease term has under eighty years outstanding, under the relevant statute the freeholder is entitled to calculate and levy a larger premium, based on a technical computation, strangely termed as “marriage value” which is due.
Leasehold premises in Groby and Ratby with over one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Groby and Ratby can be a difficult process. We recommend you procure guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Groby and Ratby lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Callum owned a studio flat in Groby and Ratby being sold with a lease of a few days over 61 years left. Callum informally contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Callum to exercise his statutory right. Callum obtained expert legal guidance and secured satisfactory resolution without resorting to tribunal and sell the flat.
Last Spring we were contacted by Mr A Parker , who took over the lease of a first floor flat in Groby and Ratby in May 2012. We are asked if we could estimate the price would be for a ninety year extension to my lease. Similar properties in Groby and Ratby with a long lease were worth £205,000. The average ground rent payable was £50 invoiced quarterly. The lease expired in 2104. Given that there were 79 years unexpired we calculated the premium to the freeholder to extend the lease to be between £7,600 and £8,800 not including fees.
In 2012 we were called by Mr Isaac Walker who, having purchased a one bedroom flat in Groby and Ratby in April 2006. We are asked if we could estimate the price would likely be for a 90 year extension to my lease. Similar properties in Groby and Ratby with a long lease were in the region of £275,000. The mid-range amount of ground rent was £65 collected quarterly. The lease came to a finish on 15 May 2093. Considering the 68 years left we calculated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 not including legals.