The only way is down when it comes to Long Sutton lease terms. Long Sutton leaseholds that have a remaining term shorter than eighty years will drop in value at a rapid rate, and the cost to extend your lease will rise.
Leasehold residencies in Long Sutton with more than 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with undertake Long Sutton 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 lawyer we work with provide it.
Connor was the the leasehold proprietor of a conversion flat in Long Sutton being sold with a lease of a few days over 61 years left. Connor 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 landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £150 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Connor to exercise his statutory right. Connor procured expert legal guidance and secured satisfactory resolution without going to tribunal and sell the flat.
Mrs Lucy Bell was assigned a lease of a one bedroom apartment in Long Sutton in March 2003. We are asked if we could estimate the premium could be to prolong the lease by ninety years. Comparative premises in Long Sutton with an extended lease were in the region of £250,400. The average amount of ground rent was £65 collected yearly. The lease ran out on 28 October 2090. Having 64 years remaining we approximated the premium to the freeholder to extend the lease to be between £19,000 and £22,000 exclusive of legals.
Mr William Patel acquired a ground floor apartment in Long Sutton in May 2004. The question was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Comparative homes in Long Sutton with a long lease were worth £189,000. The mid-range amount of ground rent was £55 collected per annum. The lease ended on 4 August 2079. Given that there were 53 years remaining we calculated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 plus professional charges.