For anyone whose Sprowston flat is held on a long lease, the message is clear – if no remedial action is taken, your property will ultimately revert to your landlord, leaving you empty-handed. The shorter the lease the less it is worth and the more it will cost to obtain a lease extension.
Leasehold properties in Sprowston with over one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Sprowston,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Sprowston valuers.
Ben was the the leasehold proprietor of a conversion flat in Sprowston on the market with a lease of fraction over 72 years unexpired. Ben on an informal basis approached his freeholder being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £200 yearly. No ground rent would be payable on a lease extension were Ben to invoke his statutory right. Ben procured expert advice and was able to make a more informed decision and deal with the matter and readily saleable.
Last year we were phoned by Mr and Mrs. F Anderson , who acquired a ground floor flat in Sprowston in April 2005. We are asked if we could approximate the price would be to prolong the lease by an additional years. Comparative premises in Sprowston with a long lease were valued about £166,800. The average ground rent payable was £50 billed per annum. The lease came to a finish on 2 October 2076. Taking into account 50 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £32,300 and £37,400 exclusive of professional charges.
Mr Harvey Thomas owned a one bedroom apartment in Sprowston in September 1998. We are asked if we could approximate the premium would be to prolong the lease by an additional years. Similar homes in Sprowston with 100 year plus lease were valued around £280,000. The mid-range ground rent payable was £45 invoiced per annum. The lease ran out on 6 March 2096. Having 70 years outstanding we estimated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 plus costs.