On the balance of probabilities where you own a flat in Sutton in Ashfield you actually own a long leasehold interest over your property
It is generally accepted that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Sutton in Ashfield,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Sutton in Ashfield valuers.
Jamie owned a high value apartment in Sutton in Ashfield on the market with a lease of just over 72 years unexpired. Jamie informally contacted his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 per annum. No ground rent would be payable on a lease extension were Jamie to exercise his statutory right. Jamie obtained expert legal guidance and secured an acceptable resolution without going to tribunal and readily saleable.
In 2011 we were e-mailed by Mr and Mrs. L Anderson who, having took over the lease of a studio apartment in Sutton in Ashfield in August 2012. The dilemma was if we could estimate the price would likely be to prolong the lease by an additional years. Comparable premises in Sutton in Ashfield with 100 year plus lease were in the region of £174,200. The average amount of ground rent was £55 invoiced annually. The lease finished on 16 February 2076. Taking into account 51 years unexpired we approximated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 exclusive of costs.
Last Autumn we were e-mailed by Mr and Mrs. D Robinson , who purchased a first floor apartment in Sutton in Ashfield in April 2006. We are asked if we could approximate the price would likely be for a ninety year lease extension. Identical properties in Sutton in Ashfield with 100 year plus lease were valued about £285,000. The average amount of ground rent was £45 collected annually. The lease came to a finish in 2096. Given that there were 71 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of expenses.