Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will normally be granted for a set period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Saffron Walden. Clearly, the period of lease left reduces as time goes by. This is often overlooked and only raises itself as an issue when the residence has to be disposed of or re-mortgaged. The fewer the years remaining the lower the value of the property and the more expensive it will be to obtain a lease extension. Qualifying long lease owners in Saffron Walden have the legal entitlement to extend the lease for a further 90 years under the 1993 Leasehold Reform Act. Do give careful attention before delaying your Saffron Walden lease extension. Putting off the cost now only increases the price you will ultimately have to pay for a lease extension
Leasehold properties in Saffron Walden with over 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. 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 |
|---|---|
| Bank of Scotland | 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with undertake Saffron Walden 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.
During the course of the last few months Ben, started to get near to the 80-year mark with the lease on his studio flat in Saffron Walden. In buying his property twenty years previously, the unexpired term was of no significance. by good luck, he recognised he needed to take action soon on Extending the lease. Ben arranged for a lease extension just under the wire last May. Ben and the freeholder subsequently agreed on an amount of £5,500 . If the lease had slipped lower than eighty years, the sum would have escalated by a minimum £1,100.
Ms Amelia Hill bought a basement apartment in Saffron Walden in October 1997. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by a further 90 years. Comparable homes in Saffron Walden with 100 year plus lease were valued about £218,000. The mid-range ground rent payable was £45 billed monthly. The lease expired on 8 September 2088. Taking into account 63 years remaining we approximated the premium to the landlord to extend the lease to be between £17,100 and £19,800 not including professional charges.
Last month we were phoned by Mr and Mrs. N Thompson , who was assigned a lease of a recently refurbished apartment in Saffron Walden in February 2005. The dilemma was if we could shed any light on how much (roughly) price would be to extend the lease by an additional years. Comparative premises in Saffron Walden with a long lease were in the region of £265,000. The mid-range amount of ground rent was £50 billed annually. The lease ended in 2099. Given that there were 74 years remaining we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus legals.