Sunningdale residential property owned on a long lease is a wasting asset as the leaseholder merely owns the property for a set term.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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 |
Regardless of whether you are a tenant or a landlord in Sunningdale,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Sunningdale valuers.
Off the back of unsuccessful negotiations with the landlord of her garden flat in Sunningdale, Yasmin commenced the lease extension process as the eighty year deadline was quickly approaching. The lease extension completed in February 2006. The landlord’s costs were kept to an absolute minimum.
Dr Oliver González purchased a one bedroom flat in Sunningdale in June 1997. The dilemma was if we could shed any light on how much (approximately) premium would be for a ninety year lease extension. Comparable homes in Sunningdale with an extended lease were in the region of £227,800. The average ground rent payable was £45 collected annually. The lease concluded on 23 February 2090. Given that there were 65 years unexpired we approximated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 not including expenses.
Last Winter we were e-mailed by Dr Oscar Rogers , who moved into a newly refurbished flat in Sunningdale in July 1995. We are asked if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Identical homes in Sunningdale with a long lease were worth £275,000. The mid-range ground rent payable was £55 collected per annum. The lease expiry date was in 2101. Considering the 76 years unexpired we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including costs.