Sprotbrough leases on residential deteriorating in value. Where your lease has in the region of 90 years left, you should start thinking about a lease extension. An important point to note is that it is financially advisable for the lease extension to take place before the term of the existing lease falls below 80 years - otherwise a higher amount will be payable. Leasehold owners in Sprotbrough will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm if you qualify. In certain cases you may not be entitled. There are also strict deadlines and steps to follow once the process is triggered so it’s prudent to be guided by a lawyer during the process.
It is generally considered that a residential leasehold with more than 100 years remaining 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 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; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB 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. |
Regardless of whether you are a tenant or a freeholder in Sprotbrough,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Sprotbrough valuers.
Sam owned a high value apartment in Sprotbrough being marketed with a lease of a little over 59 years left. Sam informally contacted his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Sam to invoke his statutory right. Sam procured expert legal guidance and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Last year we were phoned by Mr and Mrs. D Peterson , who took over the lease of a garden flat in Sprotbrough in April 1998. The question was if we could shed any light on how much (approximately) premium could be to prolong the lease by an additional years. Comparative homes in Sprotbrough with 100 year plus lease were in the region of £205,000. The average amount of ground rent was £50 billed annually. The lease came to a finish on 8 September 2104. Taking into account 79 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 not including legals.
In 2013 we were phoned by Mr and Mrs. E Reed who, having owned a studio apartment in Sprotbrough in March 2011. The dilemma was if we could approximate the premium could be for a 90 year lease extension. Comparable properties in Sprotbrough with 100 year plus lease were worth £275,000. The average amount of ground rent was £65 invoiced monthly. The lease ended on 8 February 2093. Having 68 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 plus professional charges.