Chances are that if you own a flat in Sully you actually own a long leasehold interest over your property
It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you increased control over the value of your Sully leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of protracted correspondence with the freeholder of her basement apartment in Sully, Jessica initiated the lease extension process just as her lease was coming close to the critical eighty-year deadline. The legal work was finalised in February 2009. The landlord’s costs were kept to an absolute minimum.
Dr Finn Bernard purchased a recently refurbished flat in Sully in October 2010. The question was if we could shed any light on how much (approximately) price would be for a 90 year extension to my lease. Comparative homes in Sully with a long lease were valued around £216,000. The average amount of ground rent was £60 billed per annum. The lease ran out on 25 June 2083. Considering the 58 years unexpired we estimated the premium to the landlord for the lease extension to be between £28,500 and £33,000 plus fees.
In 2013 we were called by Dr T Anderson who, having purchased a basement apartment in Sully in January 1996. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Comparative flats in Sully with an extended lease were worth £205,000. The mid-range amount of ground rent was £50 collected monthly. The lease ran out in 2103. Given that there were 78 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £7,600 and £8,800 exclusive of legals.