The market value of a leasehold property in Spondon depends on how many years the lease has remaining. If it is close to or fewer than eighty years you should anticipate difficulties on re-sale, so it is recommended to arrange for the lease to be extended before purchasing. It is preferable to commence the process of extending the lease is when the lease still has 82 years unexpired so that all matters can be addressed in advance of the eighty year cut off point. Leasehold Reform legislation entitles Spondon qualifying lessees to an additional term of ninety years in addition to the unexpired term, at a notional rent (zero ground rent). The purpose of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally accepted that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Coventry Building Society | |
| Leeds Building Society | |
| Santander | |
| Royal Bank of Scotland |
Lease extensions in Spondon can be a difficult process. We recommend you obtain professional help 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 dealing with Spondon lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Omar, started to get near to the 80-year mark with the lease on his two bedroom flat in Spondon. Having purchased his property two decades ago, the lease term was of little concern. Thankfully, he became aware that he would soon be paying an escalated premium for Extending the lease. Omar extended the lease just in the nick of time last June. Omar and the landlord eventually settled on an amount of £5,000 . If the lease had slipped to less than eighty years, the sum would have increased by a minimum £950.
In 2010 we were phoned by Ms Natasha Morel who, having owned a recently refurbished flat in Spondon in March 2000. The question was if we could estimate the price would be for a ninety year lease extension. Similar residencies in Spondon with 100 year plus lease were in the region of £280,000. The mid-range amount of ground rent was £55 collected every twelve months. The lease finished on 14 February 2105. Taking into account 79 years left we estimated the premium to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of costs.
In 2012 we were contacted by Dr I Bernard who, having took over the lease of a ground floor flat in Spondon in February 1997. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year lease extension. Comparative homes in Spondon with an extended lease were worth £193,400. The average ground rent payable was £65 collected monthly. The lease ended on 18 June 2085. Given that there were 59 years left we calculated the compensation to the landlord to extend the lease to be between £21,900 and £25,200 plus fees.