On the balance of probabilities where you own a flat in Sunningdale you actually own a long leasehold interest over your property
Leasehold properties in Sunningdale with over 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service gives you enhanced control over the value of your Sunningdale leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing unsuccessful discussions with the freeholder of her ground floor flat in Sunningdale, Erin initiated the lease extension process as the 80 year threshold was quickly nearing. The transaction was finalised in April 2014. The freeholder’s costs were negotiated to below 650 GBP.
Mr and Mrs. J Michel purchased a ground floor apartment in Sunningdale in February 2008. We are asked if we could approximate the price could be for a 90 year lease extension. Comparable residencies in Sunningdale with 100 year plus lease were worth £246,800. The average amount of ground rent was £60 invoiced yearly. The lease lapsed on 7 August 2076. Having 50 years unexpired we estimated the compensation to the landlord to extend the lease to be between £44,700 and £51,600 plus professional charges.
In 2011 we were called by Mr and Mrs. P Phillips who, having moved into a first floor apartment in Sunningdale in March 1996. We are asked if we could estimate the price would be to prolong the lease by 90 years. Identical properties in Sunningdale with a long lease were valued around £208,200. The average amount of ground rent was £65 invoiced every twelve months. The lease elapsed in 2087. Given that there were 61 years remaining we approximated the premium to the freeholder to extend the lease to be within £19,000 and £22,000 exclusive of legals.