Chances are that if you own a flat in Sparkhill you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Sparkhill,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Sparkhill valuers.
Jacob was the the leasehold proprietor of a conversion apartment in Sparkhill on the market with a lease of a little over sixty years unexpired. Jacob on an informal basis spoke with his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £125 yearly. Ordinarily, ground rent would not be due on a lease extension were Jacob to invoke his statutory right. Jacob procured expert legal guidance and secured an acceptable resolution informally and sell the property.
In 2014 we were approached by Mr and Mrs. V Williams who, having completed a one bedroom apartment in Sparkhill in May 2000. The question was if we could approximate the premium could be for a 90 year extension to my lease. Comparable homes in Sparkhill with 100 year plus lease were in the region of £191,400. The average amount of ground rent was £55 invoiced annually. The lease concluded in 2080. Considering the 54 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £34,200 and £39,600 exclusive of fees.
In 2010 we were e-mailed by Mr and Mrs. J Scott who, having completed a ground floor flat in Sparkhill in September 2005. The question was if we could approximate the price would be to prolong the lease by a further 90 years. Identical homes in Sparkhill with an extended lease were worth £290,000. The mid-range ground rent payable was £45 billed annually. The lease finished on 6 June 2100. Having 74 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 not including fees.