When it comes to domestic leasehold premises in Spondon, you are actually purchasing an entitlement to live in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are less than 80 years left. Anyone in Spondon with a lease drawing near to 81 years left should seriously consider extending it as soon as possible. Once a lease has below eighty years outstanding, under the relevant statute the landlord can calculate and levy a larger premium, based on a technical calculation, known as “marriage value” which is due.
Leasehold residencies in Spondon with over 100 years unexpired 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 freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 Spondon can be a difficult process. We recommend you secure professional help from a conveyancer and surveyor 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 in-depth market knowledge procuring Spondon lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Jake, came precariously near to the 80-year mark with the lease on his studio apartment in Spondon. In buying his home 18 years previously, the length of the lease was of no interest. Fortunately, he became aware that he would soon be paying way over the odds for Extending the lease. Jake was able to extend his lease at the eleventh hour in May. Jake and the freeholder via the management company subsequently settled on the final figure of £5,500 . If he failed to meet the deadline, the price would have become more costly by at least £975.
Last August we were approach by Mr and Mrs. Y Green , who bought a one bedroom flat in Spondon in February 2007. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year lease extension. Similar homes in Spondon with a long lease were in the region of £264,000. The mid-range amount of ground rent was £60 billed monthly. The lease expired in 2079. Having 53 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £37,100 and £42,800 plus legals.
In 2009 we were phoned by Dr Jennifer Laurent who, having took over the lease of a garden flat in Spondon in May 2009. The dilemma was if we could approximate the premium could be for a ninety year extension to my lease. Identical flats in Spondon with a long lease were worth £220,400. The average amount of ground rent was £45 invoiced every twelve months. The lease expired in 2090. Having 64 years unexpired we estimated the premium to the landlord to extend the lease to be within £15,200 and £17,600 exclusive of expenses.