The market value of Sunbury On Thames leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate significantly once the remaining term is less than eighty years
Leasehold properties in Sunbury On Thames with in excess of one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 Sunbury On Thames,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Sunbury On Thames valuers.
After unsuccessful correspondence with the freeholder of her leasehold flat in Sunbury On Thames, Gemma initiated the lease extension process as the 80 year mark was fast coming. The legal work was finalised in May 2011. The landlord’s charges were kept to an absolute minimum.
Last Spring we were approach by Mrs I Baker , who completed a studio apartment in Sunbury On Thames in July 2000. We are asked if we could estimate the price could be for a ninety year extension to my lease. Comparative properties in Sunbury On Thames with 100 year plus lease were in the region of £255,000. The mid-range ground rent payable was £50 collected per annum. The lease lapsed in 2096. Given that there were 71 years outstanding we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including expenses.
An example of a Lease Extension case for a Sunbury On Thames residence is 147 Redford Close in June 2012. The Tribunal determined the lease extension premium to be at £4,200 This case was in relation to 1 flat. The unexpired lease term was 82.93 years.