It’s a harsh truth that a Sparkhill residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Sparkhill property market.Where your lease has approximately 90 years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under 80 years - otherwise a higher premium will be due. Most flat owners in Sparkhill will be able to extend under the legislation; however a conveyancer should be able to clarify if you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer for the duration of the formalities.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Godiva Mortgages | |
| Nationwide Building Society | |
| Santander | |
| Royal Bank of Scotland |
Regardless of whether you are a tenant or a landlord in Sparkhill,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Sparkhill valuers.
Following protracted negotiations with the landlord of her garden apartment in Sparkhill, Jessica started the lease extension process as the 80 year threshold was fast advancing. The transaction was concluded in October 2008. The landlord’s charges were kept to an absolute minimum.
Mr and Mrs. P Sharif purchased a one bedroom apartment in Sparkhill in February 2004. The dilemma was if we could estimate the premium would likely be to extend the lease by 90 years. Comparable properties in Sparkhill with 100 year plus lease were valued about £200,000. The mid-range amount of ground rent was £50 billed yearly. The lease ended on 3 June 2104. Having 78 years remaining we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 not including fees.
Mr and Mrs. L Girard completed a ground floor apartment in Sparkhill in November 2000. The question was if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparative properties in Sparkhill with a long lease were worth £267,600. The mid-range ground rent payable was £65 billed every twelve months. The lease concluded on 21 July 2093. Taking into account 67 years left we estimated the premium to the freeholder to extend the lease to be within £14,300 and £16,400 plus professional charges.