Sunderland leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. It is the case that most Sunderland tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Sunderland you must see if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
Leasehold premises in Sunderland with in excess of one hundred 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 premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
The conveyancing solicitors that we work with procure Sunderland 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.
In the wake of eight months of unsuccessful negotiations with the freeholder of her basement flat in Sunderland, Jasmine started the lease extension process as the 80 year mark was rapidly coming. The lease extension was finalised in July 2006. The landlord’s costs were kept to an absolute minimum.
Mrs Georgina Dupont purchased a one bedroom apartment in Sunderland in April 2004. The dilemma was if we could approximate the price would be to prolong the lease by a further 90 years. Similar residencies in Sunderland with 100 year plus lease were valued around £216,000. The mid-range amount of ground rent was £60 collected yearly. The lease end date was in 2084. Considering the 58 years left we estimated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 not including expenses.
Mr I Thompson moved into a garden apartment in Sunderland in September 2012. The question was if we could approximate the price would be for a 90 year lease extension. Similar premises in Sunderland with a long lease were valued about £200,000. The mid-range amount of ground rent was £50 collected yearly. The lease finished in 2104. Taking into account 78 years left we approximated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of legals.