The basic rule is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Sutton On Sea may extend the lease for an additional 90 years under the 1993 Leasehold Reform Act. Do think carefully before delaying your Sutton On Sea lease extension. Shelving that expense today simply escalates the premium you will eventually have to pay to extend the lease.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 Sutton On Sea 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.
In recent months Finley, came critically close to the 80-year threshold with the lease on his garden apartment in Sutton On Sea. In buying his home 19 years previously, the unexpired term was of no interest. by good luck, he realised he needed to take steps soon on a lease extension. Finley arranged for a lease extension at the eleventh hour in August. Finley and the freeholder via the managing agents in the end agreed on the final figure of £5,500 . If he failed to meet the deadline, the figure would have escalated by at least £1,125.
Mr N Vincent owned a one bedroom flat in Sutton On Sea in October 2001. The dilemma was if we could approximate the premium would likely be for a ninety year extension to my lease. Comparable residencies in Sutton On Sea with a long lease were worth £198,800. The mid-range ground rent payable was £55 billed quarterly. The lease finished in 2081. Having 55 years outstanding we approximated the premium to the landlord for the lease extension to be between £33,300 and £38,400 not including fees.
Ms P Ward purchased a purpose-built flat in Sutton On Sea in July 2002. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Identical homes in Sutton On Sea with a long lease were valued around £295,000. The average amount of ground rent was £50 billed every twelve months. The lease expiry date was in 2101. Having 75 years unexpired we estimated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of expenses.