The market value of a leasehold property in Lower Sunbury depends on how long the lease has left to run. If it is close to or less than 80 years you should foresee problems on re-sale, so it is recommended to arrange for the lease to be extended before purchasing. It is preferable to start the process of extending the lease is when a lease still has 82 years remaining so that all matters can be addressed in advance of the 80 year mark. Leasehold Reform legislation entitles Lower Sunbury qualifying lessees to an additional term of ninety years over and above the remaining term, at a notional rent (no ground rent). The purpose of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Lower Sunbury with in excess of 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 property. In such situations there is often little upside in 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service will provide you enhanced control over the value of your Lower Sunbury leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last Summer Leo, came seriously near to the 80-year mark with the lease on his basement apartment in Lower Sunbury. In buying his property two decades ago, the unexpired term was of no relevance. Thankfully, he recognised he needed to take action soon on Extending the lease. Leo extended the lease just under the wire in April. Leo and the freeholder eventually settled on a premium of £5,500 . If he had missed the deadline, the figure would have increased by a minimum £950.
Dr L Rogers was assigned a lease of a one bedroom flat in Lower Sunbury in October 1998. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Identical homes in Lower Sunbury with 100 year plus lease were worth £176,200. The average amount of ground rent was £65 collected annually. The lease concluded on 9 July 2081. Taking into account 56 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £29,500 and £34,000 not including costs.
An example of a Lease Extension decision for a Lower Sunbury flat is 147 Redford Close in June 2012. The Tribunal determined the lease extension premium to be at £4,200 This case was in relation to 1 flat. The unexpired lease term was 82.93 years.