Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will normally be granted for a set period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Sunninghill. Inevitably, the length of lease remaining shortens over time. This may slip by relatively unnoticed when the flat or house has to be disposed of or refinanced. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Eligible leaseholders in Sunninghill have the right to extend the lease for a further 90 years in accordance with the 1993 Leasehold Reform Act. You should give due deliberation before delaying your Sunninghill lease extension. Holding off that expense now likely increases the price you will ultimately incur for a lease extension
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| 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. |
| 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 |
Lease extensions in Sunninghill can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and surveyor with experience in this area.
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 Sunninghill lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After lengthy discussions with the landlord of her one bedroom flat in Sunninghill, Grace commenced the lease extension process as the eighty year mark was swiftly nearing. The transaction was concluded in September 2012. The landlord’s costs were restricted to a tad over 650 GBP.
Mr and Mrs. P Collins moved into a first floor flat in Sunninghill in September 2005. The dilemma was if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Identical properties in Sunninghill with an extended lease were in the region of £252,800. The average ground rent payable was £65 invoiced yearly. The lease end date was on 18 November 2090. Considering the 65 years left we calculated the compensation to the landlord to extend the lease to be within £18,100 and £20,800 plus costs.
In 2012 we were called by Mr and Mrs. S Robinson who, having completed a garden apartment in Sunninghill in April 1997. The dilemma was if we could estimate the premium would likely be to prolong the lease by ninety years. Identical properties in Sunninghill with an extended lease were valued about £191,400. The average amount of ground rent was £55 billed yearly. The lease elapsed on 8 January 2079. Taking into account 54 years as a residual term we approximated the premium to the landlord to extend the lease to be between £34,200 and £39,600 not including professional charges.