Unfortunately that a Grove Park residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Grove Park property market.Where your lease has approximately ninety years left, you should start considering a lease extension. If the number of years remaining falls under eighty years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of flat owners in Grove Park will be able to extend under the legislation; however a lawyer should be able to confirm whether you qualify for an extension. In some situations 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 throughout the formalities.
Leasehold properties in Grove Park with more than one hundred 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 property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Lease extensions in Grove Park can be a difficult process. We recommend you obtain professional help from a lawyer and surveyor 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 Grove Park lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Twenty four months ago Jude, came very near to the 80-year threshold with the lease on his purpose- built apartment in Grove Park. In buying his flat two decades ago, the length of the lease was of no relevance. by good luck, he noticed he would imminently be paying an escalated premium for Extending the lease. Jude extended the lease just under the wire last January. Jude and the freeholder via the managing agents eventually agreed on an amount of £5,000 . If the lease had gone to less than 80 years, the figure would have become more costly by a minimum £950.
Last Winter we were phoned by Mrs Ella Alexander , who purchased a first floor apartment in Grove Park in June 2006. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparative flats in Grove Park with 100 year plus lease were in the region of £232,800. The average ground rent payable was £45 billed quarterly. The lease elapsed on 18 July 2091. Taking into account 65 years outstanding we approximated the premium to the landlord for the lease extension to be within £13,300 and £15,400 not including fees.
An example of a Lease Extension matter before the tribunal for a Grove Park property is 49 Woodstock Court Burnt Ash Hill in May 2012. the payment of £64,116 by the leaseholder was the premium which the Tribunal found due for the lease extension in this case. This case was in relation to 1 flat. The unexpired term was 23.26 years.