As the length of the unexpired term of a Spondon residential lease decreases so does its value and therefore the value of your property. If the residual term has, more than 99 years remaining then this decrease may be negligible nevertheless there will become a stage when a lease has less than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main reason why you should extend the lease sooner than later. Many flat owners in Spondon will meet the qualifying criteria; however a conveyancer will be able to confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold properties in Spondon with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Chelsea 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Lease extensions in Spondon can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor 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 a wealth of experience 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.
Luca was the the leasehold proprietor of a high value flat in Spondon being marketed with a lease of just over fifty eight years left. Luca informally approached his landlord a well known Manchester-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Luca to invoke his statutory right. Luca obtained expert legal guidance and was able to make an informed decision and handle with the matter and sell the property.
Last month we were called by Mr and Mrs. G Nguyen , who took over the lease of a newly refurbished apartment in Spondon in April 2009. The dilemma was if we could approximate the premium could be for a 90 year extension to my lease. Comparable residencies in Spondon with 100 year plus lease were worth £168,800. The average amount of ground rent was £60 invoiced quarterly. The lease lapsed in 2080. Considering the 55 years remaining we calculated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 plus expenses.
Last September we were approach by Mr Dexter Moore , who took over the lease of a studio apartment in Spondon in July 2004. We are asked if we could estimate the premium would likely be to prolong the lease by 90 years. Comparative flats in Spondon with 100 year plus lease were worth £235,200. The average amount of ground rent was £45 invoiced quarterly. The lease expiry date was in 2091. Given that there were 66 years outstanding we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 not including costs.