As the the remaining lease term of a Sawston residential lease decreases so does its value and therefore the value of your property. Where the lease has, more than 99 years to run then this decrease may be fractional however there will become a stage when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should consider extending sooner rather than later. Most flat owners in Sawston will meet the qualifying criteria; that being said a conveyancer will be able to confirm whether you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold premises in Sawston with over 100 years left 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 upside in buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Sawston can be a difficult process. We recommend you get guidance from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Sawston lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Ibrahim, started to get close to the eighty-year mark with the lease on his two bedroom apartment in Sawston. In buying his flat two decades ago, the length of the lease was of no bearing. by good luck, he recognised he needed to take steps soon on a lease extension. Ibrahim was able to extend his lease just under the wire last April. Ibrahim and the freeholder via the managing agents subsequently agreed on an amount of £5,000 . If the lease had slipped below 80 years, the amount would have escalated by at least £900.
Mr and Mrs. S Martínez moved into a basement apartment in Sawston in May 1999. We are asked if we could estimate the premium would be to extend the lease by ninety years. Comparative flats in Sawston with a long lease were in the region of £255,000. The mid-range ground rent payable was £50 invoiced yearly. The lease ended on 4 June 2095. Having 71 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including legals.
Mrs Isabel Sharif moved into a ground floor flat in Sawston in February 2012. The dilemma was if we could approximate the price would likely be for a 90 year lease extension. Identical premises in Sawston with 100 year plus lease were in the region of £254,200. The mid-range ground rent payable was £60 billed every twelve months. The lease expiry date was in 2075. Having 51 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £43,700 and £50,600 plus expenses.