The market value of a leasehold property in Sunningdale depends on how long the lease has left to run. If it is close to or less than eighty years you should expect problems on re-sale, so it is recommended to arrange for the lease to be extended before purchasing. Ideally one should start the lease extension process when the lease still has 82 years remaining so that a lease extension can be finalised in advance of the 80 year cut off point. Current legislation entitles Sunningdale qualifying lessees to an additional term of ninety years over and above the remaining term, at a peppercorn rent (no ground rent). The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Sunningdale with in excess of 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 situations there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Sunningdale,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Sunningdale valuers.
Last October Owen, came perilously close to the 80-year threshold with the lease on his basement apartment in Sunningdale. Having purchased his property two decades ago, the unexpired term was of no concern. Luckily, he recognised he would imminently be paying way over the odds for a lease extension. Owen extended the lease just in the nick of time last April. Owen and the landlord ultimately settled on a premium of £6,000 . If he had missed the deadline, the amount would have become more costly by at least £1,000.
In 2012 we were e-mailed by Mr D Hall who, having took over the lease of a garden apartment in Sunningdale in May 1998. We are asked if we could shed any light on how much (roughly) premium would be to extend the lease by ninety years. Identical flats in Sunningdale with an extended lease were worth £166,400. The average amount of ground rent was £60 invoiced yearly. The lease ended on 23 July 2080. Taking into account 54 years left we estimated the premium to the freeholder for the lease extension to be between £32,300 and £37,400 plus professional charges.
Mrs R Miller completed a basement flat in Sunningdale in November 2001. The question was if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Similar homes in Sunningdale with a long lease were worth £227,800. The mid-range ground rent payable was £45 invoiced monthly. The lease lapsed in 2091. Considering the 65 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of fees.