Sully leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Most owners of residential leasehold property in Sully enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Sully you must check if your lease has between seventy and 90 years left. There are compelling reasons why a Sully flat owner with a lease having around 80 years unexpired should take action to make sure that a lease extension is put in place without delay
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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. |
| 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. |
The conveyancing solicitors that we work with undertake Sully lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Jackson owned a 2 bedroom apartment in Sully on the market with a lease of just over 61 years unexpired. Jackson on an informal basis contacted his freeholder a well known local-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jackson to exercise his statutory right. Jackson procured expert legal guidance and secured an acceptable resolution without going to tribunal and readily saleable.
In 2012 we were contacted by Dr Bethany Ramírez who, having was assigned a lease of a ground floor flat in Sully in September 2005. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Identical homes in Sully with an extended lease were valued about £208,600. The average amount of ground rent was £60 invoiced quarterly. The lease expired in 2083. Having 57 years outstanding we calculated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 exclusive of fees.
In 2013 we were called by Mr J Torres who, having purchased a studio flat in Sully in September 2004. We are asked if we could shed any light on how much (roughly) price could be to prolong the lease by an additional years. Comparable premises in Sully with an extended lease were in the region of £200,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease concluded on 24 March 2103. Having 77 years outstanding we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 plus professional charges.