Sudbury leases on domestic deteriorating in value. Where your lease has approximately ninety years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease dips below this level then you begin paying an additional element called marriage value. Leasehold owners in Sudbury will usually qualify for a lease extension; however a solicitor will confirm your eligibility. In some situations you may not be entitled. There are also strict deadlines and steps to comply with once the process is triggered so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold premises in Sudbury with more than one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Retaining our service will provide you better control over the value of your Sudbury leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Lewis, came very close to the eighty-year threshold with the lease on his studio apartment in Sudbury. Having bought his home two decades ago, the unexpired term was of minimal importance. As luck would have it, he recognised he would imminently be paying an escalated premium for Extending the lease. Lewis arranged for a lease extension just under the wire last September. Lewis and the freeholder ultimately agreed on the final figure of £6,000 . If the lease had dipped lower than eighty years, the figure would have increased by at least £900.
In 2010 we were e-mailed by Mr James Bonnet who, having completed a purpose-built flat in Sudbury in February 1996. The question was if we could estimate the premium would likely be for a 90 year extension to my lease. Comparative homes in Sudbury with 100 year plus lease were worth £191,400. The average amount of ground rent was £55 billed annually. The lease ran out on 17 April 2079. Taking into account 54 years remaining we estimated the compensation to the landlord to extend the lease to be between £34,200 and £39,600 not including costs.
An example of a Lease Extension decision 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 number of years remaining on the existing lease(s) was 74 years.