Chances are that where you own a flat in Sutton you actually own a long leasehold interest over your property
It is generally considered that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service gives 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 lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Ibrahim, came precariously near to the eighty-year mark with the lease on his one bedroom flat in Sutton. In buying his property two decades ago, the length of the lease was of no bearing. by good luck, it dawned on him that he needed to take steps soon on Extending the lease. Ibrahim was able to extend his lease at the eleventh hour in July. Ibrahim and the freeholder via the managing agents ultimately settled on the final figure of £5,500 . If the lease had dipped below eighty years, the price would have escalated by at least £1,075.
In 2009 we were phoned by Dr Jake Campbell who, having moved into a one bedroom flat in Sutton in March 1999. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Identical homes in Sutton with a long lease were valued about £265,000. The average amount of ground rent was £50 invoiced every twelve months. The lease elapsed in 2098. Given that there were 73 years left we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.
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 was in relation to 2 flats. The unexpired term as at the valuation date was 66.67 years.