Owning a apartment usually means owning a lease of the property, which has a finite term of years. your lease will ordinarily be granted for a fixed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Saffron Walden. Clearly, the length of lease left shortens over time. This is often ignored and only becomes a problem when the flat or house has to be disposed of or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to procure a lease extension. Qualifying leaseholders in Saffron Walden have the legal entitlement to extend the lease for an additional 90 years under Leasehold Reform legislation. Please give due attention before delaying your Saffron Walden lease extension. Putting off that expense now only increases the price you will eventually have to pay for a lease extension
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years left, the residence 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. |
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Yorkshire Building Society | 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. |
Engaging our service gives you enhanced control over the value of your Saffron Walden leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing lengthy correspondence with the freeholder of her basement apartment in Saffron Walden, Shannon initiated the lease extension process just as her lease was nearing the all-important 80-year mark. The lease extension was concluded in August 2014. The freeholder’s charges were kept to an absolute minimum.
In 2014 we were approached by Dr Kyle Gunderson who, having owned a one bedroom apartment in Saffron Walden in June 2008. We are asked if we could approximate the price would be for a 90 year lease extension. Identical properties in Saffron Walden with a long lease were worth £280,000. The mid-range ground rent payable was £55 billed per annum. The lease expired in 2104. Having 78 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of expenses.
Last year we were e-mailed by Mr and Mrs. N Reed , who acquired a first floor flat in Saffron Walden in October 1999. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Identical flats in Saffron Walden with 100 year plus lease were in the region of £186,000. The average amount of ground rent was £65 billed monthly. The lease elapsed in 2084. Given that there were 58 years unexpired we approximated the compensation to the landlord for the lease extension to be within £24,700 and £28,600 exclusive of legals.