Owning a flat usually means owning a lease of the property, which has a set term of years. The lease will usually be granted for a set period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Grove. Inevitably, the length of lease remaining reduces over time. This is often overlooked and only becomes a problem when the flat or house needs to be sold or refinanced. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Eligible leaseholders in Grove have the legal entitlement to extend the lease for an additional ninety years in accordance with statute. Please give careful deliberation before delaying your Grove lease extension. Holding off that expense now only increases the price you will ultimately incur to extend your lease
Leasehold properties in Grove with more than one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.
| 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. |
| Chelsea 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. |
| 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. |
| Halifax | Minimum 70 years from the date 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. |
Irrespective of whether you are a tenant or a freeholder in Grove,the lease extension experts 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 valuers.
John was the the leasehold owner of a 2 bedroom apartment in Grove being sold with a lease of just over 61 years left. John on an informal basis approached his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £50 yearly. Ordinarily, ground rent would not be payable on a lease extension were John to exercise his statutory right. John obtained expert legal guidance and secured satisfactory resolution without resorting to tribunal and ending up with a market value flat.
Mr Blake Watson took over the lease of a first floor flat in Grove in April 2003. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year lease extension. Comparable residencies in Grove with a long lease were valued around £255,000. The average ground rent payable was £50 collected quarterly. The lease expiry date was on 21 October 2096. Given that there were 70 years left we approximated the compensation to the freeholder to extend the lease to be between £10,500 and £12,000 not including legals.
In 2014 we were phoned by Mrs D Ali who, having purchased a one bedroom flat in Grove in November 2011. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by 90 years. Identical residencies in Grove with a long lease were worth £246,800. The average ground rent payable was £60 invoiced quarterly. The lease elapsed in 2076. Taking into account 50 years unexpired we estimated the premium to the landlord for the lease extension to be between £44,700 and £51,600 plus legals.