Grove leases on residential properties are gradually losing value. Where your lease has in the region of 90 years left, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for the lease extension to take place before the term of the current lease drops lower than eighty years - otherwise a higher premium will be due. Flat owners in Grove will mostly qualify for a lease extension; however a solicitor should be able check if you qualify. In some cases you may not qualify. There are prescribed timetables and steps to comply with once the process is initiated so it’s sensible to be guided by a conveyancer during the process.
Leasehold properties in Grove with in excess of one hundred years remaining on the lease are sometimes regarded as a ‘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 to be gained by buying the reversionary interest unless savings on ground rent and maintenance 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
Lease extensions in Grove can be a difficult process. We recommend you get professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Grove lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 6 months of unsuccessful discussions with the landlord of her two bedroom flat in Grove, Isabelle commenced the lease extension process as the eighty year mark was rapidly advancing. The lease extension was concluded in August 2010. The landlord’s charges were restricted to below four hundred pounds.
In 2012 we were e-mailed by Mr B Lambert who, having was assigned a lease of a ground floor apartment in Grove in November 1995. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Comparable properties in Grove with 100 year plus lease were valued around £254,200. The mid-range amount of ground rent was £60 invoiced quarterly. The lease ran out in 2077. Given that there were 51 years outstanding we approximated the premium to the freeholder for the lease extension to be within £43,700 and £50,600 not including costs.
In 2014 we were approached by Mr Mason Kelly who, having owned a ground floor flat in Grove in September 2009. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Comparable homes in Grove with a long lease were worth £210,600. The average ground rent payable was £45 collected per annum. The lease expired in 2088. Given that there were 62 years as a residual term we estimated the premium to the landlord to extend the lease to be within £18,100 and £20,800 exclusive of legals.