Sunninghill leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Sunninghill residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Sunninghill you should investigate if your lease has between 70 and 90 years remaining. There are compelling reasons why a Sunninghill leaseholder with a lease having around 80 years left should take action to make sure that a lease extension is actioned without delay
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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; |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Lease extensions in Sunninghill can be a difficult process. We recommend you procure professional help from a conveyancer and surveyor 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 procuring Sunninghill lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to lengthy discussions with the landlord of her leasehold apartment in Sunninghill, Jessica commenced the lease extension process as the eighty year deadline was rapidly approaching. The transaction was concluded in January 2007. The landlord’s charges were kept to an absolute minimum.
Last month we were e-mailed by Dr Hunter Wood , who purchased a one bedroom flat in Sunninghill in October 1998. We are asked if we could estimate the price would likely be to prolong the lease by a further 90 years. Similar flats in Sunninghill with 100 year plus lease were in the region of £198,800. The mid-range amount of ground rent was £55 billed per annum. The lease finished in 2081. Given that there were 55 years outstanding we estimated the premium to the landlord to extend the lease to be between £33,300 and £38,400 plus fees.
Last Christmas we were approach by Mr and Mrs. T Garcia , who took over the lease of a basement flat in Sunninghill in April 2012. The question was if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Comparative residencies in Sunninghill with an extended lease were valued around £295,000. The average ground rent payable was £45 invoiced per annum. The lease finished on 7 July 2101. Having 75 years remaining we approximated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of professional charges.