Sutton leases on residential properties are gradually losing value. Where your lease has approximately ninety years remaining, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease drops below this level then you begin incurring an additional element called marriage value. Flat owners in Sutton will usually be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In some cases you may not qualify. There are also strict timetables and procedures to comply with once the process is initiated so it’s sensible to be guided by a lawyer during the process.
Leasehold properties in Sutton with over 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 purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| National Westminster Bank | |
| Santander | |
| Yorkshire Building Society |
Lease extensions in Sutton can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and valuer with experience in this area.
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.
18 months ago Jackson, came perilously near to the eighty-year mark with the lease on his leasehold flat in Sutton. Having bought his property two decades ago, the length of the lease was of little significance. Fortunately, it dawned on him that he would soon be paying an escalated premium for a lease extension. Jackson arranged for a lease extension at the eleventh hour last April. Jackson and the freeholder in the end settled on a premium of £5,500 . If he had missed the deadline, the premium would have gone up by a minimum £900.
Last Winter we were e-mailed by Mr and Mrs. T Ramírez , who owned a purpose-built apartment in Sutton in July 2008. The dilemma was if we could approximate the compensation to the landlord would be to extend the lease by 90 years. Identical premises in Sutton with 100 year plus lease were valued about £261,600. The average amount of ground rent was £60 invoiced quarterly. The lease end date was in 2078. Having 52 years unexpired we estimated the premium to the freeholder to extend the lease to be within £39,000 and £45,000 exclusive of professional charges.
An example of a Freehold Enfranchisement case for a Sutton property 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 was in relation to 2 flats. The unexpired lease term was 66.67 years.