Sudbury leases on domestic deteriorating in value. Where your lease has about ninety years unexpired, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for the lease extension to be in place before the term of the existing lease drops under eighty years - otherwise a higher premium will be payable. Leasehold owners in Sudbury will usually qualify for a lease extension; however it’s a good idea to check with a lawyer to confirm if you qualify. In some circumstances you may not qualify. There are prescribed timetables and procedures to follow once the process is triggered so it’s prudent to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Using our service gives you better control over the value of your Sudbury leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Arthur owned a 2 bedroom flat in Sudbury being sold with a lease of a few days over 72 years unexpired. Arthur on an informal basis approached his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 per annum. Ordinarily, ground rent would not be due on a lease extension were Arthur to invoke his statutory right. Arthur obtained expert advice and was able to make an informed decision and deal with the matter and sell the flat.
In 2011 we were e-mailed by Dr David Martinez who, having bought a studio apartment in Sudbury in July 1996. The question was if we could estimate the price would likely be for a 90 year lease extension. Identical properties in Sudbury with a long lease were worth £223,400. The mid-range ground rent payable was £60 billed monthly. The lease concluded on 28 July 2084. Given that there were 59 years unexpired we estimated the premium to the landlord to extend the lease to be within £27,600 and £31,800 exclusive of expenses.
An example of a Lease Extension decision 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 related to 1 flat. The unexpired residue of the current lease was 74 years.