The closer a residential lease in Sudbury nears to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, over 125 years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary logic behind why you should extend the lease sooner rather than later. Most flat owners in Sudbury will meet the qualifying criteria; that being said a lawyer should be able to advise whether you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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. |
| 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. |
Using our service gives you enhanced control over the value of your Sudbury leasehold, as your property will be more valuable and marketable in relation to the 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.
Following unsuccessful discussions with the freeholder of her first floor apartment in Sudbury, Courtney started the lease extension process as the eighty year mark was fast nearing. The lease extension was concluded in November 2007. The landlord’s fees were kept to an absolute minimum.
In 2010 we were called by Mrs I Morris who, having bought a basement apartment in Sudbury in November 2003. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Similar properties in Sudbury with an extended lease were in the region of £295,000. The mid-range amount of ground rent was £50 billed per annum. The lease lapsed in 2101. Given that there were 75 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 plus expenses.
An example of a Lease Extension case for a Sudbury flat 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 affected 1 flat. The unexpired residue of the current lease was 74 years.