When it comes to domestic leasehold property in Saffron Walden, you effectively rent it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater notably when there are less than eighty years remaining. Residents in Saffron Walden with a lease nearing 81 years unexpired should seriously think of extending it sooner as opposed to later. Once a lease has under eighty years left, under the relevant Act the freeholder is entitled to calculate and levy a greater amount, assessed on a technical multiplication, known as “marriage value” which is due.
It is generally considered that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Barclays plc | |
| Skipton Building Society | |
| The Mortgage Works |
Retaining our service will provide you enhanced control over the value of your Saffron Walden leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Ethan was the the leasehold proprietor of a high value flat in Saffron Walden on the market with a lease of a little over fifty eight years outstanding. Ethan on an informal basis contacted his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were Ethan to exercise his statutory right. Ethan obtained expert advice and was able to make a more informed judgement and handle with the matter and readily saleable.
Last Autumn we were phoned by Mr Aiden Johnson , who was assigned a lease of a newly refurbished flat in Saffron Walden in February 2007. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Similar flats in Saffron Walden with a long lease were worth £285,000. The average ground rent payable was £55 collected quarterly. The lease terminated in 2105. Taking into account 79 years remaining we calculated the premium to the landlord for the lease extension to be between £13,300 and £15,400 plus fees.
Last Summer we were contacted by Dr Jason Wright , who was assigned a lease of a one bedroom flat in Saffron Walden in April 2005. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparable premises in Saffron Walden with 100 year plus lease were valued around £193,400. The mid-range ground rent payable was £65 collected annually. The lease terminated on 9 September 2085. Considering the 59 years left we calculated the compensation to the landlord for the lease extension to be between £21,900 and £25,200 plus expenses.