The re-sale value of a leasehold property in Sunningdale is impacted by how many years the lease has left to run. If it is near to or fewer than 80 years you should anticipate difficulties on re-sale, so it is advisable to arrange for a lease extension prior to buying. It is ideal to start the process of extending the lease is when a lease still has 82 years remaining so that all matters can be finalised in advance of the 80 year cut off point. Leasehold Reform legislation enables Sunningdale qualifying lessees to obtain a lease extension of 90 years in addition to the remaining lease term at a peppercorn rent (that is, rent free). The reason of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally accepted that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Sunningdale can be a difficult process. We recommend you obtain professional help 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.
Trailing protracted negotiations with the landlord of her studio flat in Sunningdale, Imogen commenced the lease extension process as the 80 year deadline was rapidly coming. The transaction was concluded in October 2005. The landlord’s charges were kept to an absolute minimum.
In 2011 we were called by Mr and Mrs. A Rogers who, having was assigned a lease of a garden apartment in Sunningdale in November 2012. We are asked if we could approximate the compensation to the landlord would be to extend the lease by ninety years. Comparative properties in Sunningdale with a long lease were valued around £255,000. The average ground rent payable was £50 collected every twelve months. The lease finished in 2097. Considering the 71 years remaining we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus costs.
Mr and Mrs. Y Ward completed a one bedroom apartment in Sunningdale in March 2011. 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 100 year plus lease were valued about £254,200. The average ground rent payable was £60 billed every twelve months. The lease concluded in 2077. Considering the 51 years left we estimated the premium to the freeholder for the lease extension to be between £43,700 and £50,600 not including legals.