The value of Sawbridgeworth leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate significantly once the remaining term is less than eighty years
Leasehold residencies in Sawbridgeworth with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Halifax | |
| National Westminster Bank | |
| Nationwide Building Society | |
| Virgin |
Irrespective of whether you are a tenant or a freeholder in Sawbridgeworth,the lease extension lawyers that we work with will always be happy 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 recent months Harvey, started to get close to the eighty-year threshold with the lease on his purpose- built apartment in Sawbridgeworth. In buying his flat twenty years ago, the unexpired term was of minimal interest. As luck would have it, he noticed he needed to take action soon on a lease extension. Harvey arranged for a lease extension just ahead of time in September. Harvey and the freeholder in the end settled on an amount of £5,000 . If the lease had fallen below 80 years, the price would have increased by at least £1,025.
Last Autumn we were e-mailed by Mr and Mrs. V Martínez , who completed a one bedroom flat in Sawbridgeworth in November 2004. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Comparable properties in Sawbridgeworth with an extended lease were in the region of £275,000. The average ground rent payable was £45 invoiced yearly. The lease concluded in 2095. Given that there were 69 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 plus expenses.
In 2011 we were contacted by Ms N Morel who, having completed a one bedroom flat in Sawbridgeworth in October 1997. The question was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparable residencies in Sawbridgeworth with an extended lease were valued around £216,000. The average amount of ground rent was £60 collected per annum. The lease expired on 11 November 2084. Taking into account 58 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 plus costs.