Unfortunately that a Sunningdale residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. 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 gets to 85ish years, you need to 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 slips below 80 years - otherwise a higher amount will be due. The majority of flat owners in Sunningdale will be able to extend under the legislation; however a lawyer should be able to clarify whether you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Sunningdale,the lease extension experts 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.
James was the the leasehold owner of a 2 bedroom apartment in Sunningdale on the market with a lease of a few days over sixty years remaining. James on an informal basis approached his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were James to invoke his statutory right. James procured expert advice and was able to make an informed decision and deal with the matter and readily saleable.
In 2014 we were contacted by Mr and Mrs. O Rose who, having owned a ground floor flat in Sunningdale in February 2005. We are asked if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Similar properties in Sunningdale with 100 year plus lease were valued around £280,000. The mid-range amount of ground rent was £55 invoiced per annum. The lease expired in 2103. Having 77 years left we estimated the premium to the landlord to extend the lease to be between £13,300 and £15,400 plus expenses.
Dr F Martinez bought a studio flat in Sunningdale in September 2009. We are asked if we could estimate the premium would likely be to extend the lease by an additional years. Comparative homes in Sunningdale with 100 year plus lease were valued about £183,600. The mid-range amount of ground rent was £65 invoiced monthly. The lease termination date was on 26 June 2083. Given that there were 57 years left we approximated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of costs.