Grove leases on residential deteriorating in value. Where your lease has in the region of ninety years left, you should start thinking about a lease extension. An important point to note is that it is financially advisable for the lease extension to take place before the term of the current lease falls below 80 years - otherwise a higher premium will be payable. Leasehold owners in Grove will usually qualify for a lease extension; however a solicitor will check if you qualify. In some situations you may not be entitled. There are prescribed timetables and procedures to follow once the process is initiated so it’s wise to be guided by a lawyer during the process.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the premises 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
Using our service gives you better control over the value of your Grove leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Joshua, started to get near to the 80-year mark with the lease on his garden apartment in Grove. Having purchased his property two decades ago, the unexpired term was of minimal bearing. As luck would have it, he became aware that he would imminently be paying an escalated premium for a lease extension. Joshua arranged for a lease extension at the eleventh hour in March. Joshua and the freeholder ultimately settled on an amount of £6,000 . If he had missed the deadline, the price would have become more exhorbitant by a minimum £975.
Mr and Mrs. K Reed was assigned a lease of a ground floor flat in Grove in July 2006. The dilemma was if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Similar flats in Grove with a long lease were in the region of £191,000. The average amount of ground rent was £65 collected per annum. The lease concluded in 2084. Having 58 years left we estimated the compensation to the landlord for the lease extension to be between £23,800 and £27,400 exclusive of professional charges.
Mr M Gómez bought a purpose-built flat in Grove in May 1996. The question was if we could approximate the price would likely be for a 90 year lease extension. Comparative homes in Grove with a long lease were valued around £250,000. The average amount of ground rent was £50 invoiced per annum. The lease ended in 2095. Considering the 69 years unexpired we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of costs.