It’s an underpublicised truth 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 prices.Where your lease has approximately 90 years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than eighty years - otherwise a higher premium will be payable. The majority of leasehold owners in Grove Park will be able to extend under the legislation; however a lawyer will be able to clarify if you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your lawyer for the duration of the formalities.
Leasehold premises in Grove Park with over 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Grove Park,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Grove Park valuers.
Last year Max, came very close to the 80-year threshold with the lease on his one bedroom apartment in Grove Park. In buying his property two decades ago, the lease term was of minimal bearing. As luck would have it, he became aware that he needed to take steps soon on Extending the lease. Max arranged for a lease extension just ahead of time in September. Max and the freeholder via the managing agents in the end settled on an amount of £5,000 . If the lease had slid below eighty years, the sum would have gone up by at least £975.
Last Summer we were e-mailed by Mr and Mrs. D Lee , who was assigned a lease of a one bedroom flat in Grove Park in January 2008. We are asked if we could approximate the price would be for a ninety year lease extension. Comparable homes in Grove Park with a long lease were in the region of £227,800. The average ground rent payable was £45 billed every twelve months. The lease termination date was on 24 June 2090. Taking into account 65 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 not including costs.
An example of a Lease Extension matter before the tribunal for a Grove Park premises 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 lease term was 23.26 years.