With a domestic leasehold premises in Sudbury, you are in fact renting it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably when there are less than 80 years remaining. Residents in Sudbury with a lease approaching 81 years unexpired should seriously consider extending it sooner as opposed to later. When the lease term has under eighty years left, under the current legislation the freeholder is entitled to calculate and levy a greater premium, based on a technical multiplication, known as “marriage value” which is due.
Leasehold residencies in Sudbury with more than one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance 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 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; |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Sudbury can be a difficult process. We recommend you obtain professional help from a lawyer and valuer 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 dealing with Sudbury lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months James, came precariously near to the 80-year threshold with the lease on his studio apartment in Sudbury. In buying his property 19 years previously, the lease term was of little interest. As luck would have it, he noticed he would imminently be paying an inflated amount for a lease extension. James was able to extend his lease at the eleventh hour in May. James and the landlord who owned the flat above subsequently settled on a premium of £5,000 . If he failed to meet the deadline, the figure would have escalated by a minimum £1,050.
Last Summer we were approach by Mrs Melissa Garcia , who completed a purpose-built flat in Sudbury in January 1997. The dilemma was if we could estimate the premium would be to prolong the lease by ninety years. Comparable premises in Sudbury with a long lease were valued about £208,600. The average amount of ground rent was £60 collected annually. The lease elapsed on 20 July 2083. Having 57 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £30,400 and £35,200 exclusive of legals.
An example of a Lease Extension case for a Sudbury property is Ground Floor Flat 79 London Road in September 2012. the Tribunal held that the premium payable for the lease extension should be £7,636 This case was in relation to 1 flat. The unexpired lease term was 74 years.