Groby leases on domestic deteriorating in value. Where your lease has about 90 years remaining, you should start thinking about a lease extension. If lease term is less than eighty years, you will then have to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Groby will usually be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to confirm if you qualify. In certain situations you may not be entitled. There are prescribed deadlines and formalities to comply with once the process is initiated so it’s sensible to be guided by a lawyer during the process.
Leasehold properties in Groby with over one hundred years unexpired 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 justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| Chelsea Building Society | |
| Royal Bank of Scotland | |
| Virgin |
The conveyancing solicitors that we work with handle Groby 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 conveyancing solicitor we work with provide it.
Subsequent to lengthy correspondence with the freeholder of her leasehold apartment in Groby, Charlotte commenced the lease extension process just as the lease was coming close to the critical eighty-year mark. The transaction completed in April 2011. The landlord’s charges were kept to an absolute minimum.
Last month we were contacted by Mr and Mrs. E Rogers , who moved into a basement apartment in Groby in June 2004. We are asked if we could estimate the price could be to prolong the lease by an additional years. Comparable flats in Groby with a long lease were worth £232,800. The mid-range ground rent payable was £45 billed monthly. The lease concluded on 20 August 2091. Having 65 years unexpired we estimated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of fees.
Last Autumn we were e-mailed by Mr and Mrs. Y Martinez , who bought a purpose-built flat in Groby in September 2003. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Comparable properties in Groby with 100 year plus lease were worth £275,000. The mid-range ground rent payable was £55 billed per annum. The lease end date was in 2102. Having 76 years remaining we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus legals.