The re-sale value of a leasehold property in Saffron Walden is impacted by how many years the lease has remaining. If it is near to or fewer than 80 years you should anticipate problems on re-sale, so it is recommended to arrange for the lease to be extended ahead of buying. It is preferable to commence the lease extension process when a lease still has 82 years remaining so that a lease extension can be concluded prior to the eighty year mark. Current legislation enables Saffron Walden qualifying lessees to a ninety year extension added to their residual lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to 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. |
| 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. |
| Godiva Mortgages | 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you increased control over the value of your Saffron Walden leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Archie owned a high value flat in Saffron Walden on the market with a lease of fraction over 59 years unexpired. Archie on an informal basis contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £200 yearly. No ground rent would be due on a lease extension were Archie to exercise his statutory right. Archie obtained expert advice and was able to make an informed decision and deal with the matter and ending up with a market value flat.
Last Summer we were called by Mr Felix Evans , who bought a first floor apartment in Saffron Walden in July 2008. The dilemma was if we could estimate the premium would be for a ninety year extension to my lease. Similar homes in Saffron Walden with a long lease were valued about £254,200. The average ground rent payable was £60 invoiced per annum. The lease elapsed on 6 April 2077. Having 51 years remaining we approximated the compensation to the landlord for the lease extension to be between £43,700 and £50,600 exclusive of fees.
In 2011 we were e-mailed by Mr E Pérez who, having was assigned a lease of a first floor flat in Saffron Walden in October 2004. The dilemma was if we could estimate the premium would likely be for a 90 year extension to my lease. Comparative flats in Saffron Walden with a long lease were valued around £210,600. The average amount of ground rent was £45 collected annually. The lease expired on 3 February 2088. Having 62 years outstanding we calculated the premium to the freeholder for the lease extension to be between £18,100 and £20,800 exclusive of legals.