The re-sale value of a leasehold property in Spondon is impacted by how long the lease has left to run. If it is close to or fewer than 80 years you should foresee difficulties on re-sale, so it is recommended to arrange for the lease to be extended before buying. Ideally one should start the process of extending the lease is when a lease still has 82 years remaining so that a lease extension can be concluded prior to the eighty year threshold. Statute enables Spondon qualifying lessees to an additional term of ninety years in addition to the remaining term, at a peppercorn rent (zero ground rent). The purpose of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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 Spondon can be a difficult process. We recommend you get professional help from a conveyancing solicitor 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 Spondon lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Felix, came seriously near to the 80-year mark with the lease on his leasehold flat in Spondon. Having purchased his property two decades ago, the length of the lease was of little concern. Fortunately, he realised he would soon be paying an inflated amount for a lease extension. Felix was able to extend his lease just in the nick of time last August. Felix and the freeholder via the managing agents subsequently agreed on the final figure of £6,000 . If the lease had slid below eighty years, the premium would have become more costly by a minimum £925.
In 2014 we were called by Dr Y Gunderson who, having purchased a one bedroom apartment in Spondon in September 2007. The dilemma was if we could approximate the price would be for a 90 year extension to my lease. Comparable properties in Spondon with a long lease were valued around £186,000. The average amount of ground rent was £65 billed per annum. The lease lapsed in 2083. Given that there were 58 years left we calculated the compensation to the freeholder for the lease extension to be within £24,700 and £28,600 exclusive of expenses.
In 2011 we were approached by Mr Joshua Bernard who, having acquired a studio apartment in Spondon in March 2003. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by an additional years. Comparative residencies in Spondon with 100 year plus lease were in the region of £250,000. The mid-range ground rent payable was £50 collected monthly. The lease ran out in 2094. Considering the 69 years outstanding we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including professional charges.