Sully leases on domestic properties are gradually losing value. Where your lease has in the region of ninety years left, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for your lease extension to be in place before the term of the existing lease dips under 80 years - otherwise a higher amount will be payable. Flat owners in Sully will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancer to check your eligibility. In certain situations you may not qualify. There are prescribed deadlines and formalities to follow once the process is triggered so it’s sensible to be guided by a conveyancer during the process.
Leasehold properties in Sully with over 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Barnsley Building Society | |
| Halifax | |
| Santander | |
| Yorkshire Building Society |
The conveyancing solicitors that we work with handle 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.
Michael owned a conversion flat in Sully on the market with a lease of a little over 72 years outstanding. Michael on an informal basis contacted his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Michael to exercise his statutory right. Michael obtained expert legal guidance and was able to make an informed decision and deal with the matter and readily saleable.
In 2014 we were called by Mr and Mrs. D Morel who, having purchased a studio flat in Sully in August 2010. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year lease extension. Identical premises in Sully with a long lease were worth £166,800. The mid-range ground rent payable was £50 invoiced quarterly. The lease ran out in 2076. Given that there were 50 years left we estimated the premium to the landlord for the lease extension to be between £32,300 and £37,400 exclusive of expenses.
Mr and Mrs. C Martin acquired a studio flat in Sully in January 1999. The dilemma was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Similar flats in Sully with a long lease were worth £280,000. The average amount of ground rent was £45 collected annually. The lease came to a finish on 24 October 2096. Having 70 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 plus professional charges.