It’s a harsh certainty that a Spondon residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Spondon property prices.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below eighty years - otherwise a higher premium will be payable. Most leasehold owners in Spondon will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the process.
Leasehold residencies in Spondon with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Spondon can be a difficult process. We recommend you secure professional help from a lawyer and surveyor with experience in this area.
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 Finley, came seriously near to the 80-year mark with the lease on his one bedroom flat in Spondon. Having purchased his home twenty years ago, the length of the lease was of no bearing. Thankfully, it dawned on him that he needed to take action soon on a lease extension. Finley extended the lease just under the wire last June. Finley and the freeholder ultimately agreed on sum of £6,000 . If he not met the deadline, the figure would have become more exhorbitant by at least £1,100.
Last Christmas we were phoned by Dr Sebastian Green , who owned a one bedroom flat in Spondon in September 2001. The question was if we could shed any light on how much (approximately) premium would likely be to extend the lease by ninety years. Comparable properties in Spondon with 100 year plus lease were valued about £275,000. The average ground rent payable was £55 billed quarterly. The lease expiry date was on 20 March 2103. Considering the 77 years outstanding we calculated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of legals.
Dr Tommy Walker took over the lease of a ground floor flat in Spondon in January 2005. The question was if we could shed any light on how much (roughly) price would likely be to extend the lease by a further 90 years. Similar premises in Spondon with an extended lease were valued about £183,600. The average amount of ground rent was £65 collected annually. The lease concluded on 10 February 2083. Given that there were 57 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of legals.