Sutton residential property owned on a long lease is a depreciating asset because a leaseholder only owns the property for a set term.
Leasehold properties in Sutton with in excess of one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Sutton can be a difficult process. We recommend you procure guidance from a conveyancer and valuer 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 dealing with Sutton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Leo, came very close to the 80-year threshold with the lease on his garden flat in Sutton. In buying his flat twenty years ago, the unexpired term was of little interest. Luckily, he noticed he would imminently be paying an inflated amount for a lease extension. Leo extended the lease just ahead of time in July. Leo and the landlord eventually settled on an amount of £6,000 . If he not met the deadline, the sum would have become more costly by a minimum £1,025.
Last Christmas we were contacted by Ms Caitlin Nguyen , who purchased a one bedroom apartment in Sutton in September 2005. The question was if we could shed any light on how much (approximately) premium would be for a ninety year lease extension. Comparative premises in Sutton with an extended lease were worth £270,000. The average amount of ground rent was £55 collected every twelve months. The lease end date was in 2099. Taking into account 74 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including expenses.
An example of a Freehold Enfranchisement case for a Sutton premises is Buchanan Court 39 Vernon Road in April 2010. the Tribunal assessed that the premium payable for the freehold of the block should be £44,000. This case related to 2 flats. The unexpired lease term was 66.67 years.