With a long leasehold property in Sutton, you are actually buying a right to reside in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably when there are less than 80 years left. Leasehold owners in Sutton with a lease drawing near to 81 years left should seriously consider extending it without delay. When a lease has below eighty years remaining, under the current Act the landlord is entitled to calculate and demand a greater premium, assessed on a technical calculation, strangely termed as “marriage value” which is due.
It is generally accepted that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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 obtain professional help from a conveyancer and surveyor 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 a wealth of experience procuring Sutton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Summer Nathaniel, started to get near to the 80-year mark with the lease on his purpose- built apartment in Sutton. Having bought his property 18 years previously, the unexpired term was of no relevance. Fortunately, he realised he needed to take steps soon on Extending the lease. Nathaniel was able to extend his lease just ahead of time in July. Nathaniel and the freeholder eventually agreed on a premium of £5,000 . If the lease had fallen to less than eighty years, the figure would have escalated by at least £1,150.
In 2014 we were approached by Mr and Mrs. Y Richardson who, having moved into a newly refurbished apartment in Sutton in November 2000. The dilemma was if we could estimate the price could be for a ninety year extension to my lease. Similar flats in Sutton with 100 year plus lease were worth £280,000. The mid-range amount of ground rent was £55 invoiced quarterly. The lease terminated in 2102. Taking into account 77 years remaining we estimated the premium to the landlord for the lease extension to be within £13,300 and £15,400 not including 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 term was 66.67 years.