Owning a flat usually means owning a lease of the property, which has a finite term of years. your lease will usually be granted for a set period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Sudbury. Inevitably, the length of lease left reduces as time goes by. This may pass by relatively unnoticed when the property needs to be disposed of or re-mortgaged. The shorter the lease the less it is worth and the more it will cost to extend the lease. Qualifying leaseholders in Sudbury have the right to extend the lease for a further 90 years under Leasehold Reform legislation. Please give careful deliberation before putting off your Sudbury lease extension. Putting off that expense now simply increases the price you will eventually incur to extend your lease
Leasehold premises in Sudbury with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Regardless of whether you are a tenant or a landlord in Sudbury,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Sudbury valuers.
Subsequent to protracted correspondence with the freeholder of her purpose-built apartment in Sudbury, Ellie commenced the lease extension process as the 80 year threshold was swiftly approaching. The legal work completed in September 2007. The freeholder’s fees were restricted to less than 700 pounds.
In 2013 we were phoned by Mr and Mrs. H Anderson who, having purchased a one bedroom apartment in Sudbury in April 1996. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Similar homes in Sudbury with 100 year plus lease were valued about £275,000. The average amount of ground rent was £65 collected per annum. The lease came to a finish on 16 January 2094. Given that there were 68 years outstanding we approximated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 plus costs.
An example of a Lease Extension matter before the tribunal 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 term was 74 years.