As the the remaining lease term of a Sudbury domestic lease diminished so does its value and therefore the value of your property. Where the residual term has, beyond 99 years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has less than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main logic behind why you should consider extending sooner rather than later. The majority of flat owners in Sudbury will qualify for this right; that being said a conveyancer will be able to advise if you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold residencies in Sudbury with more than one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit 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. |
| Halifax | 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you enhanced control over the value of your Sudbury leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy correspondence with the freeholder of her ground floor apartment in Sudbury, Niamh initiated the lease extension process as the eighty year threshold was fast nearing. The lease extension was concluded in August 2012. The freeholder’s charges were kept to an absolute minimum.
Ms J Howard moved into a one bedroom apartment in Sudbury in January 2003. The question was if we could estimate the price would be to prolong the lease by an additional years. Comparable homes in Sudbury with 100 year plus lease were worth £267,600. The mid-range ground rent payable was £65 billed monthly. The lease ran out in 2092. Taking into account 67 years as a residual term we calculated the premium to the landlord for the lease extension to be between £14,300 and £16,400 exclusive of costs.
An example of a Lease Extension matter before the tribunal for a Sudbury residence 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 number of years remaining on the existing lease(s) was 74 years.