Sunningdale residential property held on a long lease is a depreciating asset because a leaseholder only owns the property for a period of years.
Leasehold residencies in Sunningdale with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a landlord in Sunningdale,the lease extension experts 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.
Off the back of lengthy negotiations with the landlord of her first floor flat in Sunningdale, Olivia started the lease extension process as the eighty year threshold was swiftly approaching. The legal work was finalised in June 2011. The landlord’s costs were kept to an absolute minimum.
Mr Y Simon bought a studio apartment in Sunningdale in November 2003. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparable homes in Sunningdale with 100 year plus lease were worth £285,000. The average ground rent payable was £55 collected quarterly. The lease ran out on 15 May 2105. Taking into account 79 years remaining we approximated the premium to the landlord to extend the lease to be between £13,300 and £15,400 not including expenses.
Last Autumn we were approach by Mr and Mrs. W Gray , who bought a purpose-built apartment in Sunningdale in July 2004. The question was if we could approximate the price would likely be for a ninety year lease extension. Comparable residencies in Sunningdale with a long lease were in the region of £193,400. The mid-range amount of ground rent was £65 billed annually. The lease expired on 24 January 2085. Having 59 years remaining we approximated the compensation to the landlord to extend the lease to be between £21,900 and £25,200 plus expenses.