On the balance of probabilities where you own a flat in Sunninghill you actually own a long leasehold interest over your property
Leasehold properties in Sunninghill with more than 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
The conveyancers that we work with undertake Sunninghill 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 conveyancing solicitor we work with provide it.
Two years ago Jasper, started to get near to the eighty-year mark with the lease on his two bedroom apartment in Sunninghill. Having bought his home 18 years ago, the unexpired term was of minimal bearing. Luckily, it dawned on him that he needed to take steps soon on Extending the lease. Jasper was able to extend his lease at the eleventh hour in September. Jasper and the landlord ultimately agreed on the final figure of £5,000 . If the lease had slipped lower than eighty years, the price would have gone up by a minimum £1,050.
In 2009 we were contacted by Mr Benjamin Rodríguez who, having completed a purpose-built apartment in Sunninghill in August 2004. We are asked if we could estimate the compensation to the landlord would be for a 90 year lease extension. Comparative premises in Sunninghill with 100 year plus lease were worth £184,000. The average ground rent payable was £55 collected yearly. The lease lapsed in 2079. Having 53 years remaining we estimated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 exclusive of fees.
Dr T Brooks was assigned a lease of a first floor flat in Sunninghill in July 2002. The dilemma was if we could estimate the price could be for a 90 year extension to my lease. Similar properties in Sunninghill with 100 year plus lease were in the region of £290,000. The mid-range ground rent payable was £45 collected every twelve months. The lease elapsed in 2099. Given that there were 73 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including costs.