As the length of the unexpired term of a Sparkhill residential lease decreases so does its value and therefore the value of your property. Where the lease has, more than 99 years remaining then this decrease may be negligible that being said there will become a point in time when a lease has under than eighty years left 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 consider extending without delay. Many flat owners in Sparkhill will qualify for this right; nevertheless a lawyer can advise whether you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Sparkhill with over one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
The conveyancers that we work with handle Sparkhill lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Aiden was the the leasehold proprietor of a high value apartment in Sparkhill on the market with a lease of just over 61 years remaining. Aiden informally approached his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £50 yearly. No ground rent would be payable on a lease extension were Aiden to exercise his statutory right. Aiden obtained expert advice and secured an acceptable deal informally and readily saleable.
In 2013 we were called by Dr Aimee Roux who, having acquired a one bedroom apartment in Sparkhill in October 2005. The dilemma was if we could approximate the compensation to the landlord would likely be to prolong the lease by an additional years. Similar flats in Sparkhill with 100 year plus lease were in the region of £210,000. The mid-range ground rent payable was £50 invoiced yearly. The lease came to a finish in 2104. Taking into account 79 years outstanding we estimated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 not including fees.
In 2011 we were e-mailed by Dr A Morgan who, having completed a purpose-built flat in Sparkhill in May 2011. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year lease extension. Similar premises in Sparkhill with 100 year plus lease were worth £275,000. The average amount of ground rent was £45 billed every twelve months. The lease ended in 2093. Given that there were 68 years remaining we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of costs.