The closer a residential lease in Spennymoor gets to zero years unexpired, the more it reduces the value of the property. If the lease has, in excess of 100 years to run then this decrease may be negligible nevertheless there will become a point in time when a lease has less than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should extend the lease without delay. Many flat owners in Spennymoor will meet the qualifying criteria; that being said a conveyancer should be able to confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is generally considered that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Spennymoor can be a difficult process. We recommend you procure guidance from a conveyancer and valuer with experience in lease extensions.
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 dealing with Spennymoor lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Alexander owned a 2 bedroom apartment in Spennymoor being sold with a lease of a few days over 72 years unexpired. Alexander on an informal basis approached his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Alexander to exercise his statutory right. Alexander obtained expert advice and was able to make an informed decision and handle with the matter and ending up with a market value flat.
In 2014 we were approached by Dr T Norbert who, having completed a basement apartment in Spennymoor in October 2003. The dilemma was if we could shed any light on how much (approximately) price could be to extend the lease by a further 90 years. Similar flats in Spennymoor with an extended lease were worth £280,000. The average ground rent payable was £55 collected quarterly. The lease ended in 2104. Considering the 78 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 plus costs.
Last Summer we were approach by Dr B Hall , who took over the lease of a one bedroom apartment in Spennymoor in August 2010. The question was if we could estimate the premium could be to extend the lease by ninety years. Identical homes in Spennymoor with an extended lease were worth £191,000. The average ground rent payable was £65 collected annually. The lease concluded in 2084. Taking into account 58 years remaining we estimated the compensation to the landlord for the lease extension to be between £23,800 and £27,400 exclusive of expenses.