Sprowston leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Sprowston enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Sprowston you would be well advised to see if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service will provide you better control over the value of your Sprowston leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jonathan owned a 2 bedroom apartment in Sprowston being marketed with a lease of just over 61 years remaining. Jonathan on an informal basis spoke with his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 yearly. No ground rent would be due on a lease extension were Jonathan to invoke his statutory right. Jonathan obtained expert advice and secured satisfactory resolution without resorting to tribunal and ending up with a market value flat.
In 2009 we were called by Mr and Mrs. N Collins who, having was assigned a lease of a basement apartment in Sprowston in November 1996. The dilemma was if we could shed any light on how much (approximately) price would likely be to prolong the lease by a further 90 years. Similar properties in Sprowston with 100 year plus lease were worth £267,600. The average amount of ground rent was £65 collected annually. The lease finished on 19 February 2092. Having 67 years as a residual term we estimated the premium to the landlord to extend the lease to be between £14,300 and £16,400 exclusive of legals.
Last Autumn we were e-mailed by Dr Kelsey King , who purchased a first floor apartment in Sprowston in September 2005. We are asked if we could estimate the premium would likely be for a 90 year extension to my lease. Identical premises in Sprowston with a long lease were worth £201,200. The average amount of ground rent was £55 collected yearly. The lease finished on 12 May 2081. Having 56 years outstanding we approximated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 plus costs.