Sunningdale leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Sunningdale residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Sunningdale you would be well advised to see if your lease has between 70 and 90 years left. There are compelling reasons why a Sunningdale leaseholder with a lease having around 80 years remaining should take action to ensure that a lease extension is effected without delay
It is generally considered that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| 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. |
| 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; |
| 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. |
Using our service will provide you better control over the value of your Sunningdale leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Muhammad, started to get near to the 80-year mark with the lease on his leasehold apartment in Sunningdale. Having bought his property 18 years ago, the lease term was of minimal bearing. Luckily, he noticed he would soon be paying an escalated premium for Extending the lease. Muhammad arranged for a lease extension at the eleventh hour last July. Muhammad and the landlord who owned the flat above eventually agreed on a premium of £5,000 . If the lease had gone lower than 80 years, the figure would have escalated by at least £1,075.
Mr E Moore owned a one bedroom apartment in Sunningdale in January 2004. The question was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Identical flats in Sunningdale with 100 year plus lease were worth £176,200. The mid-range ground rent payable was £65 invoiced every twelve months. The lease ran out on 12 January 2082. Having 56 years left we calculated the premium to the freeholder to extend the lease to be within £29,500 and £34,000 plus costs.
Last Winter we were called by Dr Aiden Smith , who acquired a basement flat in Sunningdale in April 1996. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Comparative properties in Sunningdale with 100 year plus lease were valued about £242,600. The average amount of ground rent was £45 collected every twelve months. The lease concluded in 2093. Taking into account 67 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £11,400 and £13,200 not including expenses.