Owning a apartment usually means owning a lease of the property, which has a set term of years. This lease will ordinarily be granted for a fixed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Springwell. Inevitably, the period of lease remaining shortens as time goes by. This is often overlooked and only becomes a problem when the residence has to be disposed of or re-mortgaged. The shorter the lease the less it is worth and the more expensive it will be to extend the lease. Eligible leaseholders in Springwell have the legal entitlement to extend the lease for a further ninety years under legislation. Do give careful consideration before putting off your Springwell lease extension. Putting off that expense now simply increases the price you will ultimately have to pay for a lease extension
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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; |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Lease extensions in Springwell can be a difficult process. We recommend you get professional help from a conveyancer 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 in-depth market knowledge procuring Springwell lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jude owned a studio flat in Springwell being sold with a lease of fraction over 59 years remaining. Jude informally contacted his landlord being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £200 annually. No ground rent would be payable on a lease extension were Jude to exercise his statutory right. Jude procured expert legal guidance and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
Last June we were e-mailed by Mr R Jackson , who completed a recently refurbished apartment in Springwell in May 2009. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Identical flats in Springwell with an extended lease were valued around £270,000. The average amount of ground rent was £55 collected quarterly. The lease came to a finish in 2100. Considering the 75 years left we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus costs.
Mr and Mrs. B Lefebvre was assigned a lease of a one bedroom apartment in Springwell in March 2009. The dilemma was if we could shed any light on how much (roughly) premium could be to prolong the lease by ninety years. Similar properties in Springwell with a long lease were worth £173,800. The average amount of ground rent was £65 invoiced yearly. The lease termination date was in 2080. Taking into account 55 years remaining we approximated the premium to the landlord for the lease extension to be between £31,400 and £36,200 exclusive of fees.