For anyone whose Sunningdale flat is held on a long lease, the message is clear – if you ignore the situation, your property will eventually revert to the freeholder, leaving you empty-handed. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease.
Leasehold properties in Sunningdale with over 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 home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
Lease extensions in Sunningdale can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Sunningdale lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Kai was the the leasehold owner of a 2 bedroom flat in Sunningdale being sold with a lease of fraction over 59 years left. Kai informally contacted his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared 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. Ordinarily, ground rent would not be payable on a lease extension were Kai to exercise his statutory right. Kai obtained expert advice and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
Ms C Michel purchased a newly refurbished apartment in Sunningdale in March 1995. We are asked if we could approximate the premium would be for a 90 year extension to my lease. Similar residencies in Sunningdale with 100 year plus lease were valued about £191,000. The average amount of ground rent was £65 billed quarterly. The lease expired on 27 May 2084. Taking into account 58 years remaining we calculated the compensation to the freeholder for the lease extension to be between £23,800 and £27,400 plus legals.
Mr and Mrs. S Brooks was assigned a lease of a ground floor apartment in Sunningdale in November 2007. The dilemma was if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Comparative residencies in Sunningdale with 100 year plus lease were valued about £250,000. The mid-range amount of ground rent was £50 billed per annum. The lease finished on 20 April 2095. Given that there were 69 years remaining we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus fees.