Sparkhill leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Sparkhill residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Sparkhill you must check if your lease has between 70 and 90 years remaining. There are good reasons why a Sparkhill flat owner with a lease having around eighty years remaining should take steps to make sure that a lease extension is actioned without delay
Leasehold premises in Sparkhill with more than 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Sparkhill can be a difficult process. We recommend you get guidance from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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 a wealth of experience procuring Sparkhill lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Benjamin owned a 2 bedroom apartment in Sparkhill on the market with a lease of just over 59 years remaining. Benjamin on an informal basis approached his landlord a well known local-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 initially set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Benjamin to exercise his statutory right. Benjamin obtained expert advice and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
Mr and Mrs. Y Jackson took over the lease of a garden flat in Sparkhill in February 2000. The question was if we could approximate the premium could be to extend the lease by an additional years. Comparable flats in Sparkhill with 100 year plus lease were worth £230,800. The mid-range ground rent payable was £60 billed every twelve months. The lease expired in 2085. Given that there were 60 years unexpired we calculated the premium to the landlord to extend the lease to be between £24,700 and £28,600 not including professional charges.
Last Summer we were e-mailed by Mrs Kayleigh Kelly , who purchased a one bedroom apartment in Sparkhill in July 2009. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year extension to my lease. Similar flats in Sparkhill with a long lease were in the region of £166,800. The average ground rent payable was £50 invoiced per annum. The lease came to a finish on 15 September 2075. Considering the 50 years left we calculated the compensation to the landlord to extend the lease to be between £32,300 and £37,400 not including fees.