Chances are that where you own a flat in Grove Park you actually own a long leasehold interest over your property
Leasehold residencies in Grove Park with in excess of 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Engaging our service will provide you increased control over the value of your Grove Park leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
After protracted correspondence with the landlord of her leasehold apartment in Grove Park, Abigail started the lease extension process just as her lease was nearing the all-important eighty-year threshold. The legal work was concluded in March 2011. The landlord’s charges were restricted to a tad over 450 GBP.
In 2010 we were phoned by Mrs K King who, having moved into a purpose-built flat in Grove Park in October 2009. We are asked if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Identical properties in Grove Park with an extended lease were valued around £193,400. The average ground rent payable was £65 collected every twelve months. The lease lapsed in 2084. Taking into account 59 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £21,900 and £25,200 exclusive of professional charges.
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 related to 1 flat. The unexpired term was 23.26 years.