When it comes to domestic leasehold premises in Sawtry, you effectively rent it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially once there are fewer than eighty years left. Residents in Sawtry with a lease approaching 81 years left should seriously consider extending it sooner as opposed to later. When a lease has fewer than 80 years remaining, under the current statute the landlord is entitled to calculate and demand a greater amount, assessed on a technical computation, strangely termed as “marriage value” which is due.
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Sawtry,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Sawtry valuers.
After lengthy negotiations with the landlord of her studio flat in Sawtry, Olivia started the lease extension process just as the lease was nearing the all-important 80-year mark. The lease extension was concluded in July 2012. The freeholder’s costs were restricted to below 550 GBP.
Mr and Mrs. S Thompson took over the lease of a first floor flat in Sawtry in January 1996. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparative residencies in Sawtry with a long lease were in the region of £174,200. The average ground rent payable was £55 billed annually. The lease end date was in 2076. Having 51 years remaining we approximated the premium to the landlord for the lease extension to be between £31,400 and £36,200 plus professional charges.
Mr and Mrs. R Ramírez completed a ground floor flat in Sawtry in September 2008. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Similar homes in Sawtry with an extended lease were valued about £285,000. The mid-range ground rent payable was £45 collected per annum. The lease came to a finish on 25 October 2096. Given that there were 71 years remaining we approximated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of costs.