Grove leases on domestic deteriorating in value. if your lease has about ninety years unexpired, you should start considering the need for a lease extension. If lease term is under eighty years, you will then have to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Grove will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm your eligibility. In certain circumstances you may not be entitled. There are prescribed deadlines and procedures to follow once the process is triggered so it’s sensible to be guided by a conveyancer during the process.
It is generally considered that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | |
| Halifax | |
| Skipton Building Society | |
| The Mortgage Works | |
| Virgin |
The conveyancers that we work with undertake Grove lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Last October Reuben, started to get close to the eighty-year threshold with the lease on his leasehold flat in Grove. Having purchased his home two decades ago, the lease term was of little concern. Luckily, he realised he would imminently be paying an inflated amount for Extending the lease. Reuben arranged for a lease extension at the eleventh hour last July. Reuben and the freeholder ultimately settled on a premium of £5,000 . If he had missed the deadline, the amount would have become more costly by a minimum £925.
In 2009 we were e-mailed by Mr K Rivera who, having completed a one bedroom flat in Grove in July 2006. We are asked if we could approximate the price would likely be for a 90 year lease extension. Comparative properties in Grove with an extended lease were in the region of £227,800. The mid-range ground rent payable was £45 billed per annum. The lease ended on 9 September 2091. Considering the 65 years unexpired we approximated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 not including costs.
Last Summer we were contacted by Mr and Mrs. O Díaz , who purchased a garden apartment in Grove in July 2000. The question was if we could shed any light on how much (roughly) price would be to extend the lease by a further 90 years. Comparative premises in Grove with a long lease were in the region of £275,000. The average amount of ground rent was £55 billed quarterly. The lease expired on 15 July 2102. Taking into account 76 years as a residual term we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including expenses.