Owning a flat usually means owning a lease of the property, which has a set term of years. your lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Long Sutton. Clearly, the term of lease remaining shortens as time goes by. This may pass by relatively unnoticed when the residence has to be sold or refinanced. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Qualifying long lease owners in Long Sutton have the legal entitlement to extend the lease for an additional ninety years in accordance with the 1993 Leasehold Reform Act. Do give due deliberation before putting off your Long Sutton lease extension. Holding off that expense now simply increases the price you will ultimately have to pay for a lease extension
Leasehold residencies in Long Sutton with over one hundred years unexpired on the lease are sometimes 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 upside in purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
Lease extensions in Long Sutton can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Long Sutton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
George was the the leasehold owner of a high value apartment in Long Sutton being sold with a lease of a few days over 72 years unexpired. George on an informal basis spoke with his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £200 per annum. No ground rent would be payable on a lease extension were George to invoke his statutory right. George obtained expert legal guidance and was able to make a more informed decision and handle with the matter and readily saleable.
In 2014 we were called by Mrs Stephanie Mason who, having owned a garden apartment in Long Sutton in February 2009. We are asked if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Comparable premises in Long Sutton with 100 year plus lease were in the region of £295,000. The average ground rent payable was £45 invoiced yearly. The lease elapsed in 2099. Taking into account 74 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including legals.
Last Christmas we were contacted by Mr S Brooks , who acquired a ground floor apartment in Long Sutton in August 2007. We are asked if we could shed any light on how much (approximately) price would be for a 90 year extension to my lease. Similar homes in Long Sutton with a long lease were worth £248,000. The mid-range ground rent payable was £65 collected yearly. The lease elapsed in 2088. Taking into account 63 years outstanding we calculated the premium to the freeholder for the lease extension to be between £20,000 and £23,000 not including costs.