Sutton on Trent leases on residential properties are gradually diminishing in 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 which permits qualifying Sutton on Trent residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Sutton on Trent you must investigate if your lease has between seventy and ninety years remaining. There are good reasons why a Sutton on Trent flat owner with a lease having around 80 years remaining should take steps to make sure that a lease extension is put in place without delay
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Sutton on Trent,the lease extension experts that we work with will always be prepared 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 on Trent valuers.
In 2014 Adam, started to get near to the 80-year threshold with the lease on his leasehold flat in Sutton on Trent. Having bought his home twenty years ago, the unexpired term was of little concern. As luck would have it, he noticed he would imminently be paying an inflated amount for a lease extension. Adam arranged for a lease extension just ahead of time in May. Adam and the landlord who owned the flat above ultimately agreed on an amount of £5,500 . If the lease had slid to less than 80 years, the premium would have gone up by a minimum £1,025.
In 2014 we were contacted by Mr Ibrahim Anderson who, having bought a one bedroom flat in Sutton on Trent in March 1998. We are asked if we could shed any light on how much (roughly) premium would be to prolong the lease by an additional years. Comparable premises in Sutton on Trent with an extended lease were in the region of £196,400. The average ground rent payable was £55 invoiced monthly. The lease ran out on 24 September 2080. Considering the 54 years left we approximated the premium to the freeholder to extend the lease to be between £35,200 and £40,600 exclusive of costs.
Last Autumn we were e-mailed by Mr and Mrs. F Roux , who purchased a newly refurbished apartment in Sutton on Trent in January 1995. The question was if we could shed any light on how much (approximately) premium could be to extend the lease by 90 years. Comparable flats in Sutton on Trent with 100 year plus lease were in the region of £295,000. The average ground rent payable was £45 collected every twelve months. The lease finished on 20 November 2101. Given that there were 75 years unexpired we calculated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of professional charges.