The re-sale value of a leasehold property in Lower Sunbury is impacted by how long the lease has remaining. If it is close to or less than eighty years you should envisage problems on re-sale, so it is advisable to arrange for a lease extension before buying. Ideally one should start the process of extending the lease is when a lease still has 82 years to run so that all matters can be concluded well before the eighty year threshold. Statute enables Lower Sunbury qualifying lessees to obtain a lease extension of ninety years on top of the remaining lease term at a peppercorn rent (that is, rent free). The reason of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Lower Sunbury with in excess of 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 home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| Halifax | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Lower Sunbury can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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 Lower Sunbury lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Autumn Toby, came critically near to the 80-year threshold with the lease on his basement flat in Lower Sunbury. In buying his home twenty years previously, the lease term was of minimal significance. As luck would have it, he noticed he would soon be paying an inflated amount for Extending the lease. Toby extended the lease just in the nick of time in July. Toby and the landlord who owned the flat above eventually settled on a premium of £5,500 . If he failed to meet the deadline, the amount would have increased by at least £1,000.
In 2011 we were called by Mr and Mrs. I Cook who, having acquired a one bedroom flat in Lower Sunbury in July 2000. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Comparative residencies in Lower Sunbury with an extended lease were valued around £193,400. The average amount of ground rent was £65 collected monthly. The lease elapsed on 1 August 2084. Taking into account 59 years outstanding we approximated the premium to the landlord to extend the lease to be between £21,900 and £25,200 plus fees.
An example of a Lease Extension matter before the tribunal for a Lower Sunbury residence 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 term was 82.93 years.