Grove Park leases on domestic properties are gradually losing value. Where your lease has in the region of 90 years unexpired, you should start thinking about a lease extension. If lease term dips under 80 years, you will then have to pay 50% of the property's 'marriage value' on top of the standard 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. Leasehold owners in Grove Park will usually qualify for a lease extension; however It would be wise to check with a lawyer to check your eligibility. In certain circumstances you may not be entitled. There are also strict deadlines and formalities to comply with once the process has commenced so it’s prudent to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years left, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
The conveyancers that we work with handle Grove Park 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 conveyancer we work with provide it.
18 months ago Ollie, came precariously near to the eighty-year threshold with the lease on his basement apartment in Grove Park. In buying his home two decades ago, the unexpired term was of little importance. by good luck, he realised he needed to take steps soon on a lease extension. Ollie was able to extend his lease just under the wire in May. Ollie and the freeholder in the end agreed on a premium of £5,000 . If the lease had gone to less than eighty years, the figure would have gone up by at least £1,025.
In 2009 we were phoned by Mr and Mrs. M Sánchez who, having was assigned a lease of a basement flat in Grove Park in October 2003. The question was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Similar premises in Grove Park with 100 year plus lease were worth £285,000. The mid-range amount of ground rent was £55 collected monthly. The lease terminated on 21 November 2104. Given that there were 80 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus 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 affected 1 flat. The unexpired term was 23.26 years.