Spalding leases on residential properties are gradually diminishing in 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. Legislation has been in place for sometime now allowing qualifying Spalding residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Spalding you should check if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under eighty years, the cost of any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years left, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Coventry Building Society | |
| TSB | |
| Royal Bank of Scotland | |
| Virgin | |
| Yorkshire Building Society |
Lease extensions in Spalding can be a difficult process. We recommend you secure guidance from a conveyancer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Spalding lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Jayden, came critically close to the 80-year mark with the lease on his ground floor apartment in Spalding. Having bought his flat twenty years previously, the lease term was of minimal significance. As luck would have it, he realised he needed to take steps soon on Extending the lease. Jayden was able to extend his lease just ahead of time last June. Jayden and the landlord in the end agreed on a premium of £5,500 . If the lease had dipped to less than 80 years, the amount would have escalated by at least £850.
In 2009 we were called by Dr K Rodríguez who, having purchased a one bedroom apartment in Spalding in August 2011. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by ninety years. Comparative properties in Spalding with a long lease were in the region of £200,000. The mid-range ground rent payable was £50 collected per annum. The lease came to a finish on 6 May 2104. Given that there were 78 years remaining we approximated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of fees.
Last Autumn we were contacted by Dr Cameron López , who owned a one bedroom apartment in Spalding in June 2004. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Identical flats in Spalding with an extended lease were worth £267,600. The mid-range amount of ground rent was £65 invoiced quarterly. The lease lapsed on 17 May 2093. Having 67 years unexpired we estimated the premium to the freeholder for the lease extension to be between £14,300 and £16,400 exclusive of legals.