Unfortunately that a South Sutton residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the South Sutton property market.Where your lease has approximately ninety years left, you should start considering a lease extension. If the number of years remaining falls below 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most flat owners in South Sutton will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the formalities.
Leasehold residencies in South Sutton with over one hundred years remaining 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 property. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| 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 South Sutton can be a difficult process. We recommend you get guidance from a lawyer 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 a wealth of experience procuring South Sutton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing lengthy correspondence with the landlord of her basement flat in South Sutton, Jennifer initiated the lease extension process as the eighty year threshold was rapidly approaching. The transaction completed in July 2014. The freeholder’s fees were restricted to below 600 GBP.
Dr Gabriel Ricardo acquired a garden apartment in South Sutton in June 2004. We are asked if we could shed any light on how much (approximately) price would likely be to prolong the lease by 90 years. Comparable properties in South Sutton with 100 year plus lease were valued around £261,600. The mid-range ground rent payable was £60 invoiced monthly. The lease ended in 2077. Taking into account 52 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £39,000 and £45,000 plus professional charges.
Dr Francesca Smith owned a ground floor apartment in South Sutton in July 1995. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Comparative premises in South Sutton with a long lease were worth £218,000. The average amount of ground rent was £45 invoiced quarterly. The lease expired on 9 April 2088. Taking into account 63 years unexpired we calculated the premium to the freeholder to extend the lease to be between £17,100 and £19,800 exclusive of legals.