When it comes to domestic leasehold premises in Saffron Walden, you are actually purchasing a right to reside in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are fewer than 80 years left. Anyone in Saffron Walden with a lease approaching 81 years left should seriously consider extending it without delay. Once the lease term has fewer than eighty years remaining, under the current legislation the freeholder can calculate and levy a greater amount, based on a technical calculation, known as “marriage value” which is due.
Leasehold residencies in Saffron Walden with in excess of 100 years left 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 property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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; |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Saffron Walden,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Saffron Walden valuers.
Omar was the the leasehold proprietor of a studio apartment in Saffron Walden being marketed with a lease of a little over 72 years outstanding. Omar on an informal basis approached his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £125 annually. No ground rent would be payable on a lease extension were Omar to invoke his statutory right. Omar obtained expert legal guidance and was able to make a more informed decision and handle with the matter and readily saleable.
In 2013 we were called by Dr Oscar Clarke who, having acquired a one bedroom apartment in Saffron Walden in November 2004. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by 90 years. Identical properties in Saffron Walden with an extended lease were valued about £220,400. The average amount of ground rent was £45 billed yearly. The lease elapsed in 2090. Considering the 64 years outstanding we approximated the premium to the freeholder for the lease extension to be within £15,200 and £17,600 exclusive of professional charges.
Last month we were called by Mr and Mrs. C Brown , who owned a garden flat in Saffron Walden in July 2008. The dilemma was if we could shed any light on how much (roughly) premium could be to extend the lease by 90 years. Identical flats in Saffron Walden with 100 year plus lease were worth £270,000. The average ground rent payable was £55 invoiced quarterly. The lease expired on 11 July 2101. Having 75 years as a residual term we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including expenses.