The value of Saffron Walden leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate significantly once the unexpired lease term is less than eighty years
It is generally considered that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Lease extensions in Saffron Walden can be a difficult process. We recommend you procure guidance from a conveyancer and surveyor with experience in lease extensions.
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 a wealth of experience procuring 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.
Evan owned a high value apartment in Saffron Walden being marketed with a lease of fraction over fifty eight years unexpired. Evan on an informal basis contacted his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Evan to exercise his statutory right. Evan procured expert legal guidance and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Dr H Ward moved into a first floor flat in Saffron Walden in March 2001. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by an additional years. Comparative flats in Saffron Walden with 100 year plus lease were worth £270,000. The average amount of ground rent was £55 invoiced every twelve months. The lease came to a finish on 25 August 2102. Given that there were 76 years unexpired we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including costs.
Mr R Alexander acquired a ground floor apartment in Saffron Walden in February 2006. The dilemma was if we could estimate the premium would be for a ninety year lease extension. Identical premises in Saffron Walden with a long lease were in the region of £176,200. The average amount of ground rent was £65 invoiced per annum. The lease expiry date was on 28 May 2082. Having 56 years remaining we approximated the compensation to the freeholder for the lease extension to be between £29,500 and £34,000 plus fees.