Groby leases on domestic properties are gradually losing value. if your lease has about ninety years remaining, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for the lease extension to take place before the term of the current lease dips lower than 80 years - otherwise a higher premium will be payable. Leasehold owners in Groby will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to check your eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process has started so it’s sensible to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
Engaging our service gives you increased control over the value of your Groby leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Daniel, started to get close to the 80-year mark with the lease on his leasehold apartment in Groby. In buying his property two decades ago, the unexpired term was of minimal relevance. As luck would have it, he became aware that he would soon be paying an inflated amount for a lease extension. Daniel extended the lease just ahead of time in September. Daniel and the landlord eventually settled on sum of £5,000 . If the lease had fallen lower than 80 years, the amount would have escalated by at least £1,075.
Ms Ashleigh Adams took over the lease of a studio flat in Groby in August 1999. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by ninety years. Similar homes in Groby with 100 year plus lease were in the region of £264,000. The mid-range amount of ground rent was £60 collected annually. The lease finished in 2079. Having 53 years left we approximated the premium to the freeholder to extend the lease to be between £37,100 and £42,800 plus professional charges.
In 2010 we were phoned by Mr Alfie Howard who, having completed a studio apartment in Groby in September 2005. We are asked if we could approximate the price would be to extend the lease by ninety years. Comparative properties in Groby with 100 year plus lease were worth £225,400. The mid-range ground rent payable was £45 collected per annum. The lease terminated on 3 June 2090. Considering the 64 years as a residual term we calculated the premium to the landlord to extend the lease to be within £15,200 and £17,600 not including professional charges.