It’s an underpublicised certainty that a Sunningdale residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Sunningdale property prices.Once your lease nears 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below eighty years - otherwise a higher premium will be due. Most leasehold owners in Sunningdale will be able to extend under the legislation; however a lawyer should be able to clarify whether you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your conveyancer throughout the formalities.
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Birmingham Midshires | |
| Nationwide Building Society | |
| Yorkshire Building Society |
Irrespective of whether you are a tenant or a landlord in Sunningdale,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Sunningdale valuers.
Teddy was the the leasehold owner of a studio flat in Sunningdale on the market with a lease of fraction over 61 years left. Teddy informally approached his freeholder a well known Bristol-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 per annum. No ground rent would be payable on a lease extension were Teddy to invoke his statutory right. Teddy procured expert advice and secured an acceptable resolution without resorting to tribunal and readily saleable.
Last Christmas we were approach by Mr and Mrs. C Lefebvre , who bought a purpose-built apartment in Sunningdale in March 1998. The dilemma was if we could shed any light on how much (approximately) price would likely be to prolong the lease by 90 years. Comparable flats in Sunningdale with 100 year plus lease were valued about £254,200. The mid-range amount of ground rent was £60 collected quarterly. The lease terminated on 20 June 2077. Given that there were 51 years unexpired we estimated the premium to the freeholder to extend the lease to be between £43,700 and £50,600 plus fees.
Last Winter we were e-mailed by Dr Oliver Pérez , who bought a one bedroom apartment in Sunningdale in November 2002. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by a further 90 years. Comparable homes in Sunningdale with 100 year plus lease were valued around £210,600. The mid-range ground rent payable was £45 billed monthly. The lease finished on 7 May 2088. Having 62 years remaining we estimated the premium to the freeholder for the lease extension to be within £18,100 and £20,800 exclusive of fees.