The nearer a residential lease in Grove Park nears to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, over one hundred years remaining then this decrease may be fractional that being said there will become a stage when a lease has fewer than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should consider extending sooner as opposed to later. Many flat owners in Grove Park will meet the qualifying criteria; however a conveyancing solicitor can confirm if you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
The conveyancers that we work with undertake 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 lawyer we work with provide it.
John owned a 2 bedroom apartment in Grove Park being sold with a lease of just over 72 years left. John informally contacted his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were John to invoke his statutory right. John obtained expert legal guidance and secured satisfactory resolution informally and sell the property.
Mr K Anderson moved into a one bedroom flat in Grove Park in January 1996. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Similar homes in Grove Park with an extended lease were worth £183,600. The mid-range amount of ground rent was £65 invoiced annually. The lease termination date was on 20 March 2083. Given that there were 57 years left we approximated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 plus legals.
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 as at the valuation date was 23.26 years.