The only way is down when it comes to Sudbury lease terms. Sudbury properties that have a lease term fewer than eighty years will reduce in market price at a rapid rate, and the cost to extend your lease will go up.
Leasehold properties in Sudbury with more than one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with undertake Sudbury lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Jasper was the the leasehold owner of a studio apartment in Sudbury being sold with a lease of a little over 72 years left. Jasper informally spoke with his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 annually. No ground rent would be due on a lease extension were Jasper to exercise his statutory right. Jasper procured expert advice and secured satisfactory resolution without going to tribunal and sell the flat.
In 2011 we were called by Mr and Mrs. I Simon who, having purchased a basement apartment in Sudbury in April 2005. We are asked if we could approximate the premium could be to extend the lease by an additional years. Comparative premises in Sudbury with an extended lease were valued about £285,000. The mid-range ground rent payable was £45 billed per annum. The lease lapsed on 11 April 2098. Considering the 72 years left we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 not including professional charges.
An example of a Lease Extension matter before the tribunal 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 term was 74 years.