The market value of Sunningdale leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase materialy once the unexpired lease term is below than eighty years
Leasehold properties in Sunningdale with more than 100 years unexpired 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 circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Leeds Building Society | 85 years remaining from the start 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
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 conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Eliot owned a conversion apartment in Sunningdale on the market with a lease of a few days over 72 years remaining. Eliot informally spoke with his freeholder being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Eliot to exercise his statutory right. Eliot procured expert advice and secured an acceptable resolution informally and ending up with a market value flat.
Last Christmas we were called by Dr D González , who completed a one bedroom apartment in Sunningdale in July 1998. We are asked if we could estimate the premium would be for a 90 year lease extension. Comparable homes in Sunningdale with a long lease were in the region of £245,000. The average ground rent payable was £50 invoiced per annum. The lease ran out in 2093. Having 68 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus expenses.
Mr and Mrs. F Johnson completed a basement flat in Sunningdale in April 2012. The question was if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparable flats in Sunningdale with an extended lease were in the region of £285,000. The average amount of ground rent was £55 billed yearly. The lease terminated on 21 May 2104. Taking into account 79 years remaining we estimated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 plus professional charges.