When it comes to domestic leasehold property in Sonning Common, you effectively rent it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive notably when there are fewer than 80 years remaining. Anyone in Sonning Common with a lease nearing 81 years left should seriously think of extending it as soon as possible. Once the lease term has below eighty years outstanding, under the relevant legislation the landlord is entitled to calculate and levy a larger amount, assessed on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold premises in Sonning Common with over one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Lease extensions in Sonning Common can be a difficult process. We recommend you obtain guidance from a conveyancer and valuer with experience in lease extensions.
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 dealing with 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 October Milo, came dangerously near to the 80-year threshold with the lease on his one bedroom flat in Sonning Common. In buying his flat 19 years previously, the lease term was of no relevance. Thankfully, it dawned on him that he would imminently be paying way over the odds for Extending the lease. Milo arranged for a lease extension just under the wire last May. Milo and the landlord ultimately agreed on a premium of £5,500 . If he failed to meet the deadline, the sum would have become more exhorbitant by at least £975.
Mr Andrew Hall took over the lease of a recently refurbished apartment in Sonning Common in January 2007. We are asked if we could approximate the premium would likely be to prolong the lease by a further 90 years. Comparable homes in Sonning Common with a long lease were worth £250,400. The average ground rent payable was £65 billed annually. The lease finished on 14 June 2090. Considering the 64 years unexpired we approximated the premium to the landlord for the lease extension to be within £19,000 and £22,000 exclusive of expenses.
In 2012 we were approached by Mr and Mrs. R Morris who, having owned a first floor apartment in Sonning Common in April 2010. The question was if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Comparative flats in Sonning Common with an extended lease were worth £184,000. The mid-range amount of ground rent was £55 collected quarterly. The lease ended on 21 June 2079. Considering the 53 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 exclusive of costs.