The re-sale value of a leasehold property in Saffron Walden is impacted by how long the lease has left to run. If it is near to or fewer than 80 years you should foresee difficulties on re-sale, so it is advisable to arrange for the lease to be extended ahead of purchasing. It is preferable to start the process of extending the lease is when a lease still has 82 years unexpired so that formalities can be concluded prior to the 80 year threshold. Statute entitles Saffron Walden qualifying lessees to a ninety year extension added to their remaining lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Saffron Walden with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| Halifax | |
| Nationwide Building Society | |
| TSB |
Lease extensions in Saffron Walden can be a difficult process. We recommend you obtain guidance from a conveyancer and surveyor 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 in-depth market knowledge dealing with Saffron Walden lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Nathan owned a 2 bedroom flat in Saffron Walden on the market with a lease of just over 61 years unexpired. Nathan informally contacted his freeholder a well known local-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Nathan to invoke his statutory right. Nathan obtained expert advice and was able to make an informed decision and deal with the matter and readily saleable.
Dr Megan François completed a purpose-built flat in Saffron Walden in April 2008. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Identical properties in Saffron Walden with a long lease were valued around £193,400. The average ground rent payable was £65 billed per annum. The lease expiry date was in 2085. Taking into account 59 years outstanding we approximated the compensation to the landlord to extend the lease to be between £21,900 and £25,200 not including legals.
In 2009 we were e-mailed by Dr M Moore who, having was assigned a lease of a basement flat in Saffron Walden in June 1997. The question was if we could approximate the premium could be for a 90 year extension to my lease. Identical premises in Saffron Walden with 100 year plus lease were valued around £250,000. The average amount of ground rent was £50 collected monthly. The lease concluded on 13 August 2096. Given that there were 70 years outstanding we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of costs.