Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will ordinarily be granted for a fixed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Spilsby. Inevitably, the period of lease remaining reduces as time goes by. This may slip by relatively unnoticed when the property needs to be sold or refinanced. The shorter the lease the less it is worth and the more it will cost to extend the lease. Eligible long lease owners in Spilsby have the right to extend the lease for a further ninety years under statute. Do give due deliberation before putting off your Spilsby lease extension. Putting off that expense now likely increases the price you will eventually have to pay for a lease extension
It is generally considered that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the premises will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Lease extensions in Spilsby can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and valuer 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 Spilsby lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Liam owned a conversion flat in Spilsby on the market with a lease of just over 72 years remaining. Liam on an informal basis approached his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord 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 £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Liam to invoke his statutory right. Liam obtained expert advice and was able to make an informed decision and deal with the matter and sell the property.
In 2014 we were contacted by Dr Chelsea Adams who, having moved into a garden flat in Spilsby in September 2008. We are asked if we could shed any light on how much (roughly) price could be for a 90 year extension to my lease. Comparable flats in Spilsby with an extended lease were worth £223,400. The mid-range amount of ground rent was £60 billed per annum. The lease ran out in 2084. Considering the 59 years remaining we approximated the compensation to the landlord for the lease extension to be between £27,600 and £31,800 exclusive of expenses.
In 2011 we were approached by Mr Nathaniel Clarke who, having moved into a purpose-built apartment in Spilsby in November 2005. We are asked if we could approximate the premium could be for a ninety year extension to my lease. Identical residencies in Spilsby with an extended lease were in the region of £205,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease ended on 11 May 2104. Having 79 years unexpired we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 not including professional charges.