The closer a domestic lease in Saffron Walden nears to zero years unexpired, the more it reduces the value of the property. If the residual term has, beyond 99 years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has under than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease sooner than later. Most flat owners in Saffron Walden will qualify for this right; nevertheless a conveyancer will be able to advise if you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Saffron Walden with in excess of 100 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 premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Coventry Building Society | |
| Halifax | |
| Santander | |
| The Mortgage Works |
The lawyers that we work with handle 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 conveyancer we work with provide it.
Last year Ben, started to get near to the 80-year threshold with the lease on his studio flat in Saffron Walden. In buying his home twenty years ago, the unexpired term was of no interest. Luckily, he recognised he needed to take action soon on Extending the lease. Ben arranged for a lease extension just under the wire last March. Ben and the freeholder via the managing agents eventually agreed on a premium of £5,000 . If the lease had gone to less than 80 years, the figure would have gone up by at least £1,100.
Last month we were approach by Mrs Imogen Sharif , who took over the lease of a ground floor flat in Saffron Walden in July 2011. The question was if we could shed any light on how much (approximately) price could be to prolong the lease by a further 90 years. Similar flats in Saffron Walden with a long lease were in the region of £218,000. The mid-range amount of ground rent was £45 invoiced yearly. The lease terminated on 1 April 2089. Given that there were 63 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £17,100 and £19,800 exclusive of expenses.
In 2009 we were phoned by Mr and Mrs. H Vincent who, having acquired a newly refurbished apartment in Saffron Walden in February 2002. The question was if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by a further 90 years. Similar residencies in Saffron Walden with an extended lease were in the region of £265,000. The average ground rent payable was £50 collected annually. The lease terminated in 2100. Considering the 74 years left we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including costs.