It’s a harsh truth that a Sonning Common residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Sonning Common property market.Where your lease has approximately 90 years left, you should start considering a lease extension. If lease term dips under 80 years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most leasehold owners in Sonning Common will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer throughout the formalities.
Leasehold residencies in Sonning Common with in excess of one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value 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 maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 Sonning Common can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and valuer 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 in-depth market knowledge procuring Sonning Common lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Christmas Joseph, started to get close to the eighty-year threshold with the lease on his one bedroom apartment in Sonning Common. In buying his home two decades ago, the lease term was of minimal bearing. Thankfully, he recognised he needed to take steps soon on Extending the lease. Joseph arranged for a lease extension just in the nick of time last March. Joseph and the freeholder via the management company subsequently settled on a premium of £6,000 . If the lease had dropped lower than 80 years, the amount would have gone up by at least £950.
Last month we were phoned by Ms Danielle Flores , who moved into a basement apartment in Sonning Common in September 2012. We are asked if we could estimate the premium would be to prolong the lease by ninety years. Similar premises in Sonning Common with an extended lease were worth £290,000. The mid-range ground rent payable was £45 collected monthly. The lease elapsed on 23 March 2098. Considering the 73 years outstanding we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including legals.
In 2011 we were called by Mr and Mrs. P Petit who, having took over the lease of a studio apartment in Sonning Common in April 2007. We are asked if we could estimate the price would likely be for a 90 year extension to my lease. Comparable residencies in Sonning Common with 100 year plus lease were valued around £235,600. The mid-range ground rent payable was £60 billed per annum. The lease concluded on 3 August 2087. Considering the 62 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £21,900 and £25,200 not including costs.