As the length of the unexpired term of a Grangetown domestic lease diminished so does its value and therefore the value of your property. If the lease has, beyond 100 years remaining then this decrease may be of little impact that being said there will become a point in time when a lease has fewer than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should extend the lease sooner than later. Many flat owners in Grangetown will qualify for this right; that being said a conveyancing solicitor should be able to advise whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is generally considered that a property with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with procure Grangetown 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.
In the wake of eight months of protracted negotiations with the freeholder of her one bedroom apartment in Grangetown, Freya initiated the lease extension process as the 80 year threshold was rapidly advancing. The transaction was concluded in October 2009. The landlord’s costs were kept to an absolute minimum.
Ms Alisha Simon moved into a ground floor apartment in Grangetown in November 2005. The question was if we could estimate the price would likely be for a ninety year extension to my lease. Similar residencies in Grangetown with an extended lease were worth £290,000. The average ground rent payable was £45 invoiced per annum. The lease lapsed in 2097. Given that there were 73 years left we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus expenses.
Mr C Ricardo bought a one bedroom flat in Grangetown in October 1999. The dilemma was if we could estimate the price could be to prolong the lease by an additional years. Comparative homes in Grangetown with a long lease were in the region of £235,600. The average amount of ground rent was £60 invoiced annually. The lease end date was on 10 June 2086. Considering the 62 years unexpired we estimated the premium to the landlord for the lease extension to be between £21,900 and £25,200 plus fees.