When it comes to domestic leasehold premises in Sudbury, you effectively rent it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are fewer than 80 years remaining. Leasehold owners in Sudbury with a lease approaching 81 years remaining should seriously consider extending it without delay. Once the lease term has below 80 years left, under the current legislation the freeholder is entitled to calculate and levy a greater amount, based on a technical multiplication, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for decades to come.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Irrespective of whether you are a tenant or a freeholder 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 experience and the close ties they enjoy with Sudbury valuers.
Last Spring Blake, came precariously near to the eighty-year threshold with the lease on his garden apartment in Sudbury. Having purchased his property 18 years ago, the lease term was of minimal importance. by good luck, he recognised he would soon be paying an inflated amount for a lease extension. Blake arranged for a lease extension just under the wire in March. Blake and the landlord who owned the flat above in the end agreed on sum of £6,000 . If the lease had dipped to less than eighty years, the amount would have increased by at least £1,075.
In 2012 we were contacted by Ms F Baker who, having owned a first floor flat in Sudbury in July 2000. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by 90 years. Identical flats in Sudbury with 100 year plus lease were in the region of £210,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease came to a finish on 26 March 2106. Given that there were 80 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of costs.
An example of a Lease Extension matter before the tribunal 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 was in relation to 1 flat. The unexpired term as at the valuation date was 74 years.