Unfortunately that a Sunningdale residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Sunningdale property market.Once your lease gets to 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below eighty years - otherwise a higher premium will be due. Most leasehold owners in Sunningdale will be able to extend under the legislation; however a conveyancer will be able to clarify whether you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancing solicitor throughout the process.
Leasehold residencies in Sunningdale with in excess of 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Irrespective of whether you are a tenant or a freeholder in Sunningdale,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Sunningdale valuers.
After protracted discussions with the freeholder of her purpose-built apartment in Sunningdale, Maisie initiated the lease extension process just as the lease was nearing the all-important 80-year mark. The transaction completed in March 2007. The landlord’s costs were kept to an absolute minimum.
Last Spring we were e-mailed by Dr N Bell , who was assigned a lease of a one bedroom flat in Sunningdale in March 1997. We are asked if we could estimate the price would be to extend the lease by ninety years. Comparable residencies in Sunningdale with an extended lease were valued about £166,400. The average ground rent payable was £60 invoiced yearly. The lease expired in 2079. Considering the 54 years remaining we estimated the premium to the landlord for the lease extension to be between £32,300 and £37,400 not including expenses.
In 2011 we were phoned by Mr Reuben Kelly who, having completed a studio flat in Sunningdale in May 2004. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Similar premises in Sunningdale with a long lease were valued around £227,800. The mid-range ground rent payable was £45 invoiced annually. The lease came to a finish on 22 February 2090. Taking into account 65 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of legals.