It’s an underpublicised certainty that a Groby residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Groby property prices.Once your lease gets to 85ish years, you need to start thinking about a lease extension. If the number of years remaining falls under 80 years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most leasehold owners in Groby will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer for the duration of the formalities.
Leasehold premises in Groby with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| Skipton Building Society | |
| TSB | |
| Royal Bank of Scotland | |
| Virgin |
Irrespective of whether you are a tenant or a freeholder in Groby,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Groby valuers.
Theo was the the leasehold proprietor of a conversion flat in Groby being marketed with a lease of a few days over 72 years unexpired. Theo informally spoke with his landlord being a well known Manchester-based freehold company for a lease extension. The landlord 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 £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Theo to invoke his statutory right. Theo obtained expert legal guidance and was able to make an informed decision and handle with the matter and readily saleable.
In 2011 we were approached by Mr and Mrs. K Stewart who, having completed a studio apartment in Groby in February 2002. The dilemma was if we could approximate the premium could be to extend the lease by ninety years. Comparative properties in Groby with a long lease were in the region of £280,000. The average amount of ground rent was £55 collected monthly. The lease expired in 2103. Taking into account 77 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of professional charges.
Mr and Mrs. H Watson bought a first floor apartment in Groby in November 2001. The question was if we could approximate the price would be to extend the lease by 90 years. Similar premises in Groby with a long lease were worth £183,600. The mid-range ground rent payable was £65 billed monthly. The lease ended in 2083. Given that there were 57 years left we estimated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 plus professional charges.