It’s a harsh certainty that a South Sutton residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the South Sutton property prices.Where your lease has approximately 90 years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than eighty years - otherwise a higher amount will be payable. Most leasehold owners in South Sutton will be able to extend under the legislation; however a lawyer should be able to clarify whether you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in South Sutton,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with South Sutton valuers.
In the wake of 6 months of unsuccessful discussions with the freeholder of her ground floor flat in South Sutton, Gemma initiated the lease extension process just as her lease was nearing the all-important eighty-year mark. The legal work was concluded in January 2005. The landlord’s costs were kept to an absolute minimum.
Mr and Mrs. T Campbell completed a ground floor flat in South Sutton in January 1996. We are asked if we could approximate the premium would likely be to extend the lease by ninety years. Similar residencies in South Sutton with an extended lease were worth £173,800. The average ground rent payable was £60 invoiced per annum. The lease expired on 15 June 2081. Having 55 years as a residual term we estimated the premium to the landlord for the lease extension to be between £31,400 and £36,200 not including fees.
In 2009 we were approached by Mr and Mrs. J Pérez who, having owned a one bedroom flat in South Sutton in August 2011. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year lease extension. Similar properties in South Sutton with a long lease were in the region of £235,200. The average amount of ground rent was £45 collected per annum. The lease expired on 20 July 2092. Taking into account 66 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 not including legals.