When it comes to residential leasehold premises in Sutton, you effectively rent it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are less than 80 years left. Leasehold owners in Sutton with a lease drawing near to 81 years left should seriously think of extending it without delay. Once the lease term has under eighty years outstanding, under the relevant statute the landlord can calculate and levy a larger premium, based on a technical computation, known as “marriage value” which is payable.
Leasehold premises in Sutton with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
| Yorkshire Building Society | 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. |
Regardless of whether you are a tenant or a freeholder in Sutton,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 Sutton valuers.
Off the back of lengthy correspondence with the freeholder of her garden apartment in Sutton, Charlotte commenced the lease extension process just as the lease was nearing the crucial 80-year mark. The transaction completed in February 2008. The freeholder’s costs were kept to an absolute minimum.
In 2013 we were e-mailed by Mr and Mrs. K Girard who, having completed a recently refurbished flat in Sutton in February 2002. The question was if we could shed any light on how much (approximately) price would be for a 90 year extension to my lease. Comparable premises in Sutton with an extended lease were valued about £260,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease terminated on 9 August 2097. Having 72 years as a residual term we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus legals.
An example of a Freehold Enfranchisement matter before the tribunal for a Sutton property is Buchanan Court 39 Vernon Road in April 2010. the Tribunal assessed that the premium payable for the freehold of the block should be £44,000. This case affected 2 flats. The remaining number of years on the lease was 66.67 years.