When it comes to domestic leasehold premises in Sunningdale, you are actually purchasing a right to live in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are fewer than eighty years left. Leasehold owners in Sunningdale with a lease drawing near to 81 years remaining should seriously consider extending it as soon as possible. When a lease has under eighty years left, under the current statute the freeholder is entitled to calculate and charge a larger amount, assessed on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold premises in Sunningdale with in excess of one hundred years remaining 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 reversionary interest unless savings on ground rent and service charges merit it.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with undertake Sunningdale lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Charlie owned a high value apartment in Sunningdale on the market with a lease of a few days over sixty years remaining. Charlie on an informal basis contacted his landlord being a well known Bristol-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Charlie to exercise his statutory right. Charlie procured expert legal guidance and was able to make a more informed judgement and deal with the matter and sell the flat.
Mr E Phillips moved into a studio flat in Sunningdale in August 2008. We are asked if we could approximate the price would be to extend the lease by a further 90 years. Identical properties in Sunningdale with a long lease were in the region of £173,800. The average ground rent payable was £60 collected quarterly. The lease elapsed in 2081. Taking into account 55 years outstanding we estimated the premium to the landlord to extend the lease to be within £31,400 and £36,200 plus fees.
In 2010 we were approached by Mr and Mrs. M Smith who, having acquired a garden flat in Sunningdale in November 2008. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparative homes in Sunningdale with an extended lease were in the region of £235,200. The average ground rent payable was £45 invoiced annually. The lease expired on 12 July 2092. Having 66 years remaining we calculated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 plus legals.