There is no doubt about it a leasehold flat or house in Sunbury is a wasting asset as a result of the diminishing lease term. If the residual term has, beyond one hundred years to run then this decrease may be negligible however there will become a point in time when a lease has fewer than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should consider extending sooner as opposed to later. The majority of flat owners in Sunbury will qualify for this right; however a conveyancer should be able to confirm whether you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Sunbury with in excess of 100 years remaining on the lease are sometimes referred to as ‘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 reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with procure Sunbury 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.
Two years ago Sebastian, started to get close to the 80-year threshold with the lease on his ground floor flat in Sunbury. Having bought his home twenty years ago, the lease term was of no relevance. Thankfully, he became aware that he would imminently be paying an inflated amount for Extending the lease. Sebastian was able to extend his lease just ahead of time last May. Sebastian and the landlord who owned the flat above ultimately settled on the final figure of £6,000 . If he failed to meet the deadline, the sum would have gone up by at least £900.
Dr J Walker was assigned a lease of a garden apartment in Sunbury in February 2001. We are asked if we could estimate the price could be to extend the lease by an additional years. Similar properties in Sunbury with a long lease were worth £270,000. The average amount of ground rent was £55 billed monthly. The lease came to a finish on 6 October 2101. Considering the 75 years left we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus expenses.
An example of a Lease Extension case for a Sunbury property is 147 Redford Close in June 2012. The Tribunal determined the lease extension premium to be at £4,200 This case affected 1 flat. The unexpired term as at the valuation date was 82.93 years.