It’s a harsh certainty that a Saffron Walden residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Saffron Walden property prices.Once your lease nears 85ish years, you should start thinking about a lease extension. If lease term slips under eighty years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Saffron Walden will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
It is conventional wisdom that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Irrespective of whether you are a tenant or a landlord 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.
Elijah was the the leasehold owner of a conversion apartment in Saffron Walden on the market with a lease of just over fifty eight years left. Elijah informally approached his landlord a well known London-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 new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Elijah to invoke his statutory right. Elijah obtained expert advice and was able to make an informed decision and deal with the matter and ending up with a market value flat.
In 2013 we were approached by Mr and Mrs. H Martínez who, having moved into a first floor apartment in Saffron Walden in February 2001. We are asked if we could estimate the price would likely be for a ninety year lease extension. Comparable premises in Saffron Walden with an extended lease were in the region of £280,000. The average ground rent payable was £55 billed per annum. The lease came to a finish on 25 February 2103. Considering the 78 years left we estimated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 plus professional charges.
Mr and Mrs. P Nelson bought a newly refurbished apartment in Saffron Walden in July 2001. We are asked if we could estimate the compensation to the landlord would be for a 90 year lease extension. Similar residencies in Saffron Walden with an extended lease were in the region of £186,000. The mid-range ground rent payable was £65 invoiced every twelve months. The lease concluded on 18 July 2083. Considering the 58 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £24,700 and £28,600 plus expenses.