Sully residential property held on a long lease is a depreciating asset as the leaseholder only owns the property for a set term.
It is generally considered that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Sully,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Sully valuers.
Ollie owned a high value apartment in Sully being marketed with a lease of fraction over fifty eight years left. Ollie on an informal basis approached his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 yearly. Ordinarily, ground rent would not be due on a lease extension were Ollie to exercise his statutory right. Ollie obtained expert legal guidance and secured satisfactory resolution informally and ending up with a market value flat.
In 2012 we were approached by Mrs Hollie Lambert who, having purchased a first floor apartment in Sully in April 2009. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year extension to my lease. Comparative premises in Sully with an extended lease were valued about £248,000. The mid-range amount of ground rent was £65 billed monthly. The lease lapsed in 2089. Considering the 63 years left we approximated the compensation to the landlord for the lease extension to be within £20,900 and £24,200 not including legals.
In 2010 we were phoned by Dr C Clark who, having bought a ground floor apartment in Sully in March 2008. We are asked if we could approximate the premium would likely be for a 90 year extension to my lease. Similar residencies in Sully with a long lease were in the region of £184,000. The average ground rent payable was £55 invoiced per annum. The lease elapsed in 2079. Taking into account 53 years outstanding we approximated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 not including legals.