Lower Sunbury leases on residential properties are gradually losing value. if your lease has approximately ninety years unexpired, you should start considering the need for a lease extension. If lease term dips under eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Lower Sunbury will usually be legally entitled to a lease extension; however It would be wise to check with a lawyer to check if you qualify. In some situations you may not qualify. There are prescribed timetables and procedures to comply with once the process is initiated so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold properties in Lower Sunbury with over 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you increased control over the value of your Lower Sunbury leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
16 months ago Edward, came seriously near to the 80-year mark with the lease on his leasehold apartment in Lower Sunbury. Having purchased his home twenty years previously, the lease term was of no importance. Luckily, he realised he would imminently be paying an escalated premium for a lease extension. Edward extended the lease just under the wire last May. Edward and the freeholder via the managing agents eventually agreed on sum of £6,000 . If he failed to meet the deadline, the sum would have escalated by a minimum £1,100.
Mrs J Lewis acquired a newly refurbished apartment in Lower Sunbury in April 2008. We are asked if we could shed any light on how much (approximately) price would likely be to prolong the lease by an additional years. Comparative flats in Lower Sunbury with 100 year plus lease were in the region of £166,400. The mid-range ground rent payable was £60 billed yearly. The lease came to a finish on 3 September 2080. Having 54 years outstanding we approximated the premium to the freeholder for the lease extension to be within £32,300 and £37,400 exclusive of expenses.
An example of a Lease Extension case 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 term as at the valuation date was 82.93 years.