When it comes to long leasehold property in Lower Sunbury, you are actually purchasing a right to reside in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater notably once there are fewer than 80 years remaining. Residents in Lower Sunbury with a lease approaching 81 years left should seriously think of extending it sooner than later. Once the lease term has less than eighty years remaining, under the relevant legislation the landlord is entitled to calculate and levy a larger premium, assessed on a technical computation, known as “marriage value” which is payable.
Leasehold residencies in Lower Sunbury with more than 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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. |
The lawyers that we work with procure Lower Sunbury 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 conveyancer we work with provide it.
Daniel owned a studio flat in Lower Sunbury being sold with a lease of fraction over 61 years left. Daniel informally contacted his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were Daniel to invoke his statutory right. Daniel obtained expert advice and secured an acceptable resolution without resorting to tribunal and ending up with a market value flat.
Last Christmas we were phoned by Ms R Nelson , who bought a one bedroom flat in Lower Sunbury in February 1997. We are asked if we could shed any light on how much (approximately) price would be to prolong the lease by an additional years. Similar premises in Lower Sunbury with a long lease were in the region of £280,000. The average ground rent payable was £55 collected annually. The lease finished in 2104. Considering the 78 years left we approximated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 plus costs.
An example of a Lease Extension decision 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 affected 1 flat. The unexpired lease term was 82.93 years.