Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will usually be granted for a set period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Grove Park. Inevitably, the length of lease left reduces as time goes by. This is often ignored and only raises itself as an issue when the flat or house has to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Eligible long lease owners in Grove Park have the legal entitlement to extend the lease for an additional 90 years under statute. You should give due deliberation before delaying your Grove Park lease extension. Holding off that expense now likely increases the price you will eventually have to pay for a lease extension
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you increased control over the value of your Grove Park leasehold, as your property will be more valuable and saleable in relation to the 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.
Following unsuccessful correspondence with the freeholder of her purpose-built flat in Grove Park, Ellie started the lease extension process as the eighty year deadline was rapidly advancing. The lease extension was concluded in September 2008. The freeholder’s fees were negotiated to approximately 500 GBP.
In 2011 we were called by Dr J Taylor who, having acquired a newly refurbished flat in Grove Park in February 2012. The question was if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Similar premises in Grove Park with 100 year plus lease were valued around £220,400. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease lapsed in 2090. Given that there were 64 years left we approximated the premium to the landlord for the lease extension to be within £15,200 and £17,600 exclusive of legals.
An example of a Lease Extension matter before the tribunal for a Grove Park flat 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 lease term was 23.26 years.