When it comes to residential leasehold premises in Sudbury, you are actually buying an entitlement to reside in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater particularly when there are less than eighty years left. Residents in Sudbury with a lease approaching 81 years left should seriously consider extending it as soon as possible. When a lease has below eighty years left, under the current legislation the freeholder is entitled to calculate and demand a greater amount, based on a technical multiplication, strangely termed as “marriage value” which is payable.
It is generally accepted that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you enhanced control over the value of your Sudbury leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Austin was the the leasehold proprietor of a studio flat in Sudbury being marketed with a lease of a few days over 59 years left. Austin informally approached his freeholder a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £200 per annum. No ground rent would be due on a lease extension were Austin to invoke his statutory right. Austin procured expert legal guidance and secured satisfactory deal without going to tribunal and readily saleable.
Mrs C Leroy moved into a one bedroom apartment in Sudbury in March 1997. The question was if we could estimate the premium would be to extend the lease by an additional years. Comparable premises in Sudbury with 100 year plus lease were valued about £235,600. The mid-range amount of ground rent was £60 billed quarterly. The lease came to a finish in 2086. Having 62 years left we calculated the compensation to the freeholder to extend the lease to be between £21,900 and £25,200 plus costs.
An example of a Lease Extension matter before the tribunal 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 lease term was 74 years.