Sunningdale leases on domestic deteriorating in value. Where your lease has in the region of 90 years remaining, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for a lease extension to take place before the term of the existing lease dips under 80 years - otherwise a higher premium will be payable. Leasehold owners in Sunningdale will mostly be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In certain cases you may not qualify. There are prescribed deadlines and procedures to comply with once the process is initiated so it’s best to be guided by a conveyancer during the process.
It is generally considered that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as 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. |
| 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; |
| Chelsea Building Society | 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. |
| 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. |
| Yorkshire Building Society | 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. |
Using our service will provide you increased control over the value of your Sunningdale leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to unsuccessful correspondence with the freeholder of her purpose-built apartment in Sunningdale, Imogen commenced the lease extension process just as her lease was coming close to the all-important 80-year deadline. The transaction was concluded in November 2010. The landlord’s charges were negotiated to a tad over 600 pounds.
Dr Cameron Martinez took over the lease of a basement flat in Sunningdale in March 2008. The dilemma was if we could estimate the premium could be to prolong the lease by a further 90 years. Comparative properties in Sunningdale with 100 year plus lease were worth £242,600. The average ground rent payable was £45 collected yearly. The lease expired on 23 August 2092. Having 67 years left we approximated the compensation to the landlord for the lease extension to be between £11,400 and £13,200 plus legals.
Last Summer we were contacted by Dr P Nelson , who acquired a one bedroom flat in Sunningdale in May 2009. The dilemma was if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Similar residencies in Sunningdale with an extended lease were valued about £280,000. The mid-range amount of ground rent was £55 billed yearly. The lease expiry date was on 22 November 2103. Considering the 78 years remaining we approximated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 plus fees.