Sutton leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Sutton enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Sutton you must see if your lease has between seventy and 90 years remaining. There are good reasons why a Sutton flat owner with a lease having around eighty years unexpired should take action to ensure that a lease extension is put in place without delay
It is generally accepted that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service will provide you better control over the value of your Sutton leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Dexter owned a high value apartment in Sutton being marketed with a lease of just over fifty eight years unexpired. Dexter on an informal basis contacted his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 yearly. No ground rent would be due on a lease extension were Dexter to invoke his statutory right. Dexter obtained expert legal guidance and was able to make an informed decision and handle with the matter and sell the property.
Mr and Mrs. O Rodríguez moved into a one bedroom apartment in Sutton in June 2010. We are asked if we could approximate the price could be to extend the lease by 90 years. Identical flats in Sutton with an extended lease were valued about £264,000. The average ground rent payable was £60 collected monthly. The lease terminated in 2079. Given that there were 53 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £37,100 and £42,800 plus costs.
An example of a Freehold Enfranchisement matter before the tribunal for a Sutton flat 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 residue of the current lease was 66.67 years.