The market value of Sawbridgeworth leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate materialy once the remaining term is less than 80 years
Leasehold premises in Sawbridgeworth with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord 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 experience and the close ties they enjoy with Sawbridgeworth valuers.
Milo owned a high value flat in Sawbridgeworth on the market with a lease of a little over 72 years outstanding. Milo informally contacted his landlord a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Milo to invoke his statutory right. Milo obtained expert legal guidance and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Last March we were e-mailed by Ms Daisy Morgan , who owned a garden apartment in Sawbridgeworth in August 2000. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year lease extension. Comparative properties in Sawbridgeworth with an extended lease were worth £200,000. The mid-range ground rent payable was £50 invoiced per annum. The lease concluded on 22 May 2103. Considering the 78 years remaining we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of expenses.
In 2013 we were contacted by Mr and Mrs. K Turner who, having took over the lease of a ground floor apartment in Sawbridgeworth in October 2011. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by ninety years. Comparable premises in Sawbridgeworth with an extended lease were valued around £267,600. The mid-range amount of ground rent was £65 billed quarterly. The lease ended in 2092. Having 67 years left we approximated the compensation to the freeholder for the lease extension to be within £14,300 and £16,400 not including legals.