The closer a residential lease in Spalding gets to zero years unexpired, the more it reduces the value of the property. If the residual term has, over 99 years remaining then this decrease may be fractional however there will become a point in time when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main reason why you should extend the lease sooner as opposed to later. Most flat owners in Spalding will meet the qualifying criteria; that being said a conveyancing solicitor can advise if you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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; |
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Spalding,the lease extension experts 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 Spalding valuers.
Oscar owned a conversion flat in Spalding on the market with a lease of a few days over 59 years remaining. Oscar informally approached his landlord being a well known Manchester-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 yearly. No ground rent would be payable on a lease extension were Oscar to invoke his statutory right. Oscar procured expert advice and secured satisfactory resolution without going to tribunal and readily saleable.
In 2009 we were phoned by Mr and Mrs. J Stewart who, having was assigned a lease of a studio apartment in Spalding in February 2001. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by an additional years. Similar flats in Spalding with an extended lease were valued about £210,000. The mid-range ground rent payable was £50 invoiced annually. The lease elapsed in 2105. Taking into account 80 years left we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of costs.
In 2011 we were approached by Dr Caleb Miller who, having owned a one bedroom apartment in Spalding in July 1997. We are asked if we could approximate the price would be to extend the lease by an additional years. Similar properties in Spalding with an extended lease were valued about £275,000. The mid-range amount of ground rent was £45 collected per annum. The lease concluded in 2094. Taking into account 69 years outstanding we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of professional charges.