Chances are that if you own a flat in Sunbury you actually own a long leasehold interest over your property
Leasehold residencies in Sunbury with in excess of one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date 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. |
Regardless of whether you are a tenant or a landlord in Sunbury,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 in-depth market knowledge and the close ties they enjoy with Sunbury valuers.
Following lengthy correspondence with the freeholder of her first floor flat in Sunbury, Chloe commenced the lease extension process as the eighty year deadline was fast approaching. The lease extension was finalised in August 2014. The freeholder’s fees were restricted to below five hundred GBP.
In 2014 we were phoned by Dr J Khan who, having was assigned a lease of a studio flat in Sunbury in September 2012. We are asked if we could approximate the price could be for a 90 year lease extension. Similar residencies in Sunbury with 100 year plus lease were worth £280,000. The mid-range amount of ground rent was £55 collected monthly. The lease lapsed on 12 January 2102. Considering the 77 years unexpired we calculated the premium to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of fees.
An example of a Lease Extension case for a Sunbury 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 term as at the valuation date was 82.93 years.