Sunderland leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Legislation has been in place for sometime now which permits qualifying Sunderland residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Sunderland you really ought to investigate if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
Lease extensions in Sunderland can be a difficult process. We recommend you obtain professional help from a conveyancer and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Sunderland lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing unsuccessful correspondence with the landlord of her garden flat in Sunderland, Anna started the lease extension process as the 80 year deadline was quickly approaching. The transaction completed in June 2014. The landlord’s costs were kept to an absolute minimum.
In 2014 we were phoned by Dr Grace Gunderson who, having completed a ground floor apartment in Sunderland in May 1996. The question was if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Comparable flats in Sunderland with 100 year plus lease were valued about £275,000. The average amount of ground rent was £65 billed monthly. The lease lapsed on 1 February 2093. Taking into account 68 years remaining we calculated the premium to the landlord for the lease extension to be between £12,400 and £14,200 not including fees.
Mr and Mrs. N James completed a ground floor flat in Sunderland in August 1997. The question was if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Identical properties in Sunderland with a long lease were valued around £208,600. The average amount of ground rent was £60 billed monthly. The lease elapsed on 10 July 2082. Considering the 57 years remaining we estimated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 plus fees.