The only way is down when it comes to Saffron Walden lease terms. Saffron Walden leaseholds that have a residual term lower than 80 years will de-escalate in market price at a rapid rate, and the cost of extending your lease will go up.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the property will be worth the same as a freehold for many years ahead.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 procure 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 lawyer we work with provide it.
In recent months Daniel, came precariously near to the 80-year threshold with the lease on his first floor flat in Saffron Walden. Having bought his home 19 years previously, the unexpired term was of minimal relevance. by good luck, he realised he needed to take steps soon on a lease extension. Daniel extended the lease just under the wire in May. Daniel and the landlord subsequently agreed on the final figure of £6,000 . If he not met the deadline, the figure would have become more costly by at least £1,050.
Last February we were contacted by Mr and Mrs. L André , who bought a recently refurbished apartment in Saffron Walden in January 2003. The question was if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Comparable premises in Saffron Walden with an extended lease were valued around £176,200. The mid-range ground rent payable was £65 billed annually. The lease came to a finish in 2082. Having 56 years left we approximated the premium to the freeholder to extend the lease to be within £29,500 and £34,000 plus professional charges.
In 2014 we were e-mailed by Ms Stephanie Mercier who, having bought a recently refurbished apartment in Saffron Walden in September 1998. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparative properties in Saffron Walden with a long lease were valued about £237,600. The mid-range ground rent payable was £45 invoiced every twelve months. The lease finished in 2093. Taking into account 67 years left we estimated the compensation to the freeholder to extend the lease to be within £11,400 and £13,200 exclusive of expenses.