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. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
Lease extensions in Sudbury can be a difficult process. We recommend you procure professional help from a lawyer and valuer with experience in lease extensions.
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 in-depth market knowledge 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.
Last Spring Andrew, came precariously close to the eighty-year mark with the lease on his studio apartment in Sudbury. Having bought his home two decades ago, the lease term was of little interest. Fortunately, he became aware that he would soon be paying an inflated amount for a lease extension. Andrew was able to extend his lease just under the wire in May. Andrew and the freeholder subsequently agreed on the final figure of £5,000 . If he not met the deadline, the premium would have increased by a minimum £950.
In 2014 we were contacted by Dr I Martin who, having purchased a basement flat in Sudbury in October 2011. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year lease extension. Identical flats in Sudbury with 100 year plus lease were worth £223,400. The mid-range amount of ground rent was £60 collected every twelve months. The lease lapsed in 2084. Taking into account 59 years outstanding we estimated the compensation to the landlord to extend the lease to be between £27,600 and £31,800 exclusive of costs.
An example of a Lease Extension decision for a Sudbury premises 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 term was 74 years.