Spilsby residential property held on a long lease is a wasting asset as the leaseholder merely owns the property for a set term.
It is generally considered that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you better control over the value of your Spilsby leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Hugo, started to get close to the eighty-year threshold with the lease on his basement apartment in Spilsby. Having purchased his home two decades ago, the lease term was of minimal bearing. Luckily, he noticed he needed to take steps soon on Extending the lease. Hugo extended the lease just in the nick of time in January. Hugo and the landlord who owned the flat above in the end settled on a premium of £5,000 . If the lease had slipped lower than eighty years, the premium would have increased by a minimum £850.
In 2009 we were phoned by Dr I Miller who, having was assigned a lease of a purpose-built flat in Spilsby in March 2010. The question was if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Identical premises in Spilsby with an extended lease were worth £205,000. The average ground rent payable was £50 invoiced monthly. The lease terminated in 2104. Having 78 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of fees.
Last Summer we were approach by Dr Connor Young , who bought a purpose-built flat in Spilsby in July 2010. The dilemma was if we could approximate the premium could be to extend the lease by 90 years. Comparable properties in Spilsby with a long lease were worth £267,600. The mid-range amount of ground rent was £65 invoiced monthly. The lease ran out on 23 August 2093. Given that there were 67 years outstanding we calculated the premium to the landlord for the lease extension to be within £14,300 and £16,400 not including legals.