The only way is down when it comes to Summerhill lease terms. Summerhill properties that have a residual term lower than eighty years will drop in market price at a rapid rate, and the cost of extending your lease will rise.
Leasehold residencies in Summerhill with over 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Birmingham Midshires | |
| Chelsea Building Society | |
| Godiva Mortgages |
The conveyancers that we work with handle Summerhill 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 conveyancer we work with provide it.
Alexander owned a 2 bedroom apartment in Summerhill on the market with a lease of just over 61 years left. Alexander informally contacted his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 annually. No ground rent would be payable on a lease extension were Alexander to exercise his statutory right. Alexander procured expert legal guidance and was able to make a more informed decision and handle with the matter and readily saleable.
Dr R Ricardo acquired a one bedroom flat in Summerhill in September 2011. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Identical residencies in Summerhill with an extended lease were in the region of £216,000. The average ground rent payable was £60 invoiced every twelve months. The lease concluded on 11 August 2084. Considering the 58 years remaining we approximated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of fees.
In 2012 we were approached by Mr and Mrs. P Young who, having moved into a one bedroom apartment in Summerhill in September 2000. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year extension to my lease. Similar properties in Summerhill with an extended lease were valued around £205,000. The mid-range amount of ground rent was £50 billed annually. The lease elapsed on 24 May 2104. Given that there were 78 years outstanding we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 plus professional charges.