Owning a flat usually means owning a lease of the property, which has a set term of years. The lease will ordinarily be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Sonning Common. Clearly, the term of lease left reduces over time. This may slip by relatively unnoticed when the property has to be sold or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Qualifying leaseholders in Sonning Common have the right to extend the lease for an additional 90 years in accordance with the 1993 Leasehold Reform Act. Please give careful attention before putting off your Sonning Common lease extension. Putting off the cost now likely increases the price you will ultimately have to pay to extend your lease
It is generally considered that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Sonning Common,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Sonning Common valuers.
Last Spring Jason, started to get close to the 80-year mark with the lease on his two bedroom apartment in Sonning Common. In buying his property 19 years previously, the lease term was of little relevance. Luckily, it dawned on him that he needed to take action soon on a lease extension. Jason arranged for a lease extension just under the wire last May. Jason and the landlord eventually agreed on a premium of £6,000 . If he failed to meet the deadline, the price would have gone up by a minimum £1,125.
Last year we were approach by Dr Jessica Morgan , who took over the lease of a ground floor flat in Sonning Common in August 1995. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year extension to my lease. Comparative flats in Sonning Common with a long lease were worth £210,000. The average ground rent payable was £50 billed monthly. The lease came to a finish in 2105. Having 80 years remaining we approximated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 not including professional charges.
In 2010 we were contacted by Mr Lucas Stewart who, having was assigned a lease of a one bedroom apartment in Sonning Common in September 2011. We are asked if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Identical properties in Sonning Common with an extended lease were valued about £275,000. The mid-range amount of ground rent was £45 billed quarterly. The lease ended on 1 February 2094. Having 69 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including costs.