Owning a flat usually means owning a lease of the property, which has a set term of years. The lease will ordinarily be granted for a set period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Grove. Clearly, 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 re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to procure a lease extension. Qualifying long lease owners in Grove have the right to extend the lease for an additional ninety years in accordance with legislation. Do give due deliberation before delaying your Grove lease extension. Putting off that expense now simply increases the price you will eventually have to pay to extend your lease
It is generally accepted that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service will provide you increased control over the value of your Grove leasehold, as your property will be more valuable and saleable in respect 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.
Last October Ryan, came very near to the eighty-year mark with the lease on his studio flat in Grove. Having bought his property two decades ago, the length of the lease was of little significance. Thankfully, he became aware that he needed to take steps soon on Extending the lease. Ryan arranged for a lease extension just ahead of time last June. Ryan and the landlord in the end settled on an amount of £5,000 . If he not met the deadline, the figure would have escalated by at least £1,075.
In 2014 we were e-mailed by Mr and Mrs. V Martin who, having completed a studio flat in Grove in May 2012. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Identical residencies in Grove with 100 year plus lease were valued around £200,800. The average ground rent payable was £65 invoiced monthly. The lease ended in 2085. Having 60 years unexpired we estimated the compensation to the landlord for the lease extension to be between £20,900 and £24,200 not including costs.
Dr Mollie Hernández completed a one bedroom flat in Grove in September 2009. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Identical properties in Grove with 100 year plus lease were in the region of £255,000. The average amount of ground rent was £50 billed per annum. The lease concluded on 17 March 2096. Considering the 71 years remaining we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of expenses.