As the the remaining lease term of a Sawbridgeworth domestic lease diminished so does its value and therefore the value of your property. If the lease has, beyond 125 years to run then this decrease may be negligible nevertheless there will become a point in time when a lease has less than eighty years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should consider extending without delay. Many flat owners in Sawbridgeworth will meet the qualifying criteria; nevertheless a conveyancing solicitor will be able to confirm if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold residencies in Sawbridgeworth with in excess of 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Chelsea Building Society | |
| Coventry Building Society | |
| Nationwide Building Society | |
| Virgin |
Irrespective of whether you are a tenant or a freeholder in Sawbridgeworth,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 in-depth market knowledge and the close ties they enjoy with Sawbridgeworth valuers.
In 2014 Owen, came dangerously close to the eighty-year mark with the lease on his one bedroom apartment in Sawbridgeworth. In buying his flat two decades ago, the unexpired term was of no importance. Thankfully, he recognised he needed to take action soon on a lease extension. Owen arranged for a lease extension just under the wire last May. Owen and the freeholder via the management company eventually agreed on the final figure of £6,000 . If he failed to meet the deadline, the amount would have become more exhorbitant by a minimum £1,075.
In 2014 we were contacted by Mr and Mrs. S Richardson who, having bought a basement flat in Sawbridgeworth in February 2002. The question was if we could approximate the price would be for a 90 year extension to my lease. Comparative residencies in Sawbridgeworth with 100 year plus lease were in the region of £208,600. The average amount of ground rent was £60 collected quarterly. The lease finished on 15 September 2083. Given that there were 57 years left we calculated the premium to the landlord for the lease extension to be between £30,400 and £35,200 exclusive of costs.
Mrs S David took over the lease of a ground floor flat in Sawbridgeworth in January 1999. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Similar flats in Sawbridgeworth with an extended lease were in the region of £200,000. The average ground rent payable was £50 billed yearly. The lease finished in 2103. Taking into account 77 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 plus expenses.