As the length of the unexpired term of a Sunningdale domestic lease decreases so does its value and therefore the value of your property. If the residual term has, more than 99 years to run then this decrease may be fractional nevertheless there will become a stage when a lease has fewer than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should extend the lease sooner than later. Many flat owners in Sunningdale will qualify for this right; that being said a conveyancing solicitor will be able to confirm whether you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally considered that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with handle Sunningdale lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
In the wake of eight months of lengthy negotiations with the landlord of her two bedroom flat in Sunningdale, Molly initiated the lease extension process as the eighty year mark was quickly advancing. The lease extension was finalised in March 2008. The freeholder’s fees were kept to an absolute minimum.
In 2011 we were e-mailed by Mr Lewis Rodríguez who, having acquired a basement flat in Sunningdale in June 2007. The question was if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year lease extension. Identical residencies in Sunningdale with 100 year plus lease were valued about £264,000. The mid-range ground rent payable was £60 collected annually. The lease came to a finish in 2078. Considering the 53 years remaining we calculated the premium to the freeholder to extend the lease to be within £37,100 and £42,800 plus expenses.
In 2010 we were contacted by Dr Sarah David who, having took over the lease of a studio apartment in Sunningdale in January 1997. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Similar properties in Sunningdale with a long lease were in the region of £225,400. The average amount of ground rent was £45 invoiced per annum. The lease lapsed in 2089. Given that there were 64 years remaining we estimated the premium to the landlord to extend the lease to be within £15,200 and £17,600 exclusive of expenses.