As the length of the unexpired term of a Grappenhall residential lease diminished so does its value and therefore the value of your property. Where the lease has, in excess of 125 years remaining then this decrease may be of little impact that being said there will become a stage when a lease has under than 80 years unexpired 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 consider extending without delay. Most flat owners in Grappenhall will meet the qualifying criteria; that being said a lawyer can confirm if you qualify to extend your lease. 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 more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you better control over the value of your Grappenhall leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing protracted discussions with the landlord of her leasehold apartment in Grappenhall, Louise commenced the lease extension process as the 80 year mark was swiftly coming. The legal work completed in August 2009. The landlord’s fees were restricted to under 650 pounds.
Last month we were contacted by Mr and Mrs. C Martinez , who moved into a first floor flat in Grappenhall in May 2007. We are asked if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Similar homes in Grappenhall with a long lease were in the region of £191,000. The average amount of ground rent was £65 billed monthly. The lease ran out in 2082. Taking into account 58 years remaining we approximated the premium to the landlord to extend the lease to be between £23,800 and £27,400 not including fees.
Mr and Mrs. F Clarke bought a ground floor flat in Grappenhall in January 2007. The question was if we could approximate the price would be for a 90 year extension to my lease. Comparable properties in Grappenhall with an extended lease were valued around £250,000. The average amount of ground rent was £50 billed quarterly. The lease came to a finish on 22 May 2093. Considering the 69 years remaining we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of legals.