Chances are that if you own a flat in Spalding you actually own a long leasehold interest over your property
Leasehold residencies in Spalding with more than 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Lease extensions in Spalding can be a difficult process. We recommend you procure professional help from a lawyer and surveyor with experience in lease extensions.
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 in-depth market knowledge 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.
Alfie was the the leasehold owner of a studio apartment in Spalding being sold with a lease of just over 61 years outstanding. Alfie on an informal basis approached his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £100 per annum. No ground rent would be due on a lease extension were Alfie to invoke his statutory right. Alfie procured expert advice and secured satisfactory resolution informally and readily saleable.
Dr Owen Lee bought a ground floor apartment in Spalding in May 2000. The question was if we could estimate the price could be for a 90 year lease extension. Identical properties in Spalding with 100 year plus lease were in the region of £233,200. The mid-range ground rent payable was £60 collected every twelve months. The lease expired in 2087. Taking into account 61 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £22,800 and £26,400 exclusive of professional charges.
Last Christmas we were approach by Dr I Williams , who purchased a basement flat in Spalding in May 2012. The question was if we could approximate the premium would likely be to prolong the lease by ninety years. Identical flats in Spalding with a long lease were worth £166,800. The average ground rent payable was £50 collected every twelve months. The lease concluded on 25 May 2076. Considering the 50 years outstanding we approximated the compensation to the landlord for the lease extension to be between £32,300 and £37,400 not including expenses.