As the the remaining lease term of a Sparkhill domestic lease diminished so does its value and therefore the value of your property. Where the lease has, over one hundred years remaining then this decrease may be negligible nevertheless there will become a point in time when a lease has under than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main rational as to why you should consider extending without delay. The majority of flat owners in Sparkhill will meet the qualifying criteria; however a conveyancing solicitor can advise whether you are eligible for a lease extension. 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.
Leasehold residencies in Sparkhill with in excess of one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
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.
Seth was the the leasehold owner of a studio flat in Sparkhill on the market with a lease of a little over 61 years unexpired. Seth on an informal basis approached his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Seth to exercise his statutory right. Seth procured expert legal guidance and secured satisfactory deal informally and sell the flat.
Mr Omar David acquired a purpose-built flat in Sparkhill in October 1995. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Comparable residencies in Sparkhill with a long lease were worth £260,200. The mid-range ground rent payable was £65 collected yearly. The lease elapsed on 16 February 2092. Taking into account 66 years outstanding we estimated the premium to the freeholder for the lease extension to be within £16,200 and £18,600 not including expenses.
In 2013 we were contacted by Mr and Mrs. R Carter who, having moved into a purpose-built flat in Sparkhill in June 2002. The dilemma was if we could approximate the price could be for a 90 year extension to my lease. Comparative properties in Sparkhill with 100 year plus lease were valued around £198,800. The average ground rent payable was £55 collected quarterly. The lease came to a finish on 22 January 2081. Considering the 55 years outstanding we calculated the compensation to the landlord for the lease extension to be between £33,300 and £38,400 plus professional charges.