Grahame Park leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. The majority of owners of residential leasehold property in Grahame Park enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Grahame Park you would be well advised to see if your lease has between 70 and ninety years left. There are compelling reasons why a Grahame Park flat owner with a lease having around 80 years left should take steps to ensure that a lease extension is put in place without delay
Leasehold residencies in Grahame Park with over 100 years unexpired 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 situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Grahame Park,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Grahame Park valuers.
Trailing unsuccessful negotiations with the landlord of her one bedroom flat in Grahame Park, Courtney started the lease extension process just as the lease was nearing the crucial eighty-year mark. The transaction was finalised in January 2013. The landlord’s fees were kept to an absolute minimum.
Mr and Mrs. V Fournier was assigned a lease of a studio apartment in Grahame Park in May 2012. We are asked if we could approximate the price would be to extend the lease by 90 years. Comparable premises in Grahame Park with 100 year plus lease were valued about £193,400. The mid-range ground rent payable was £65 collected quarterly. The lease came to a finish on 18 May 2084. Having 59 years remaining we estimated the premium to the landlord for the lease extension to be between £21,900 and £25,200 plus expenses.
An example of a Freehold Enfranchisement case for a Grahame Park flat is 1 & 1A Sunningfields Crescent in September 2013. The Tribunals calculation of the amount to be paid into court in respect of the value of the freehold interest is £11,997 in respect of Flat 1 and £15,781 in respect of Flat 1A for a total of £27,778. This case was in relation to 2 flats. The unexpired term as at the valuation date was 71.5 years.