There is no doubt about it a leasehold flat or house in Spilsby is a wasting asset as a result of the diminishing lease term. Where the residual term has, in excess of one hundred years to run then this decrease may be of little impact however there will become a point in time when a lease has fewer than 80 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 main logic behind why you should consider extending without delay. Most flat owners in Spilsby will qualify for this right; nevertheless a conveyancing solicitor can advise whether you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| National Westminster Bank | |
| TSB | |
| Virgin | |
| Yorkshire Building Society |
Using our service will provide you enhanced control over the value of your Spilsby leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jasper owned a high value apartment in Spilsby on the market with a lease of just over 61 years unexpired. Jasper on an informal basis contacted his freeholder a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were Jasper to invoke his statutory right. Jasper obtained expert legal guidance and secured an acceptable deal informally and sell the flat.
In 2011 we were approached by Mr and Mrs. R Simon who, having took over the lease of a first floor apartment in Spilsby in March 2010. We are asked if we could shed any light on how much (approximately) price would be to prolong the lease by 90 years. Similar flats in Spilsby with 100 year plus lease were worth £191,400. The mid-range amount of ground rent was £55 invoiced annually. The lease expired on 26 July 2080. Having 54 years left we calculated the premium to the freeholder for the lease extension to be between £34,200 and £39,600 plus professional charges.
In 2011 we were phoned by Dr Rachel Phillips who, having purchased a garden flat in Spilsby in February 1996. The dilemma was if we could approximate the price could be for a ninety year extension to my lease. Comparative properties in Spilsby with 100 year plus lease were in the region of £295,000. The average amount of ground rent was £45 collected monthly. The lease ran out on 2 September 2100. Considering the 74 years unexpired we calculated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 not including fees.