Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Sawston. Clearly, the length of lease left reduces as time goes by. This may slip by relatively unnoticed when the property needs to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more it will cost to obtain a lease extension. Eligible long lease owners in Sawston have the legal entitlement to extend the lease for an additional ninety years in accordance with legislation. You should give due consideration before delaying your Sawston lease extension. Putting off the cost now simply increases the price you will eventually have to pay to extend your lease
Leasehold residencies in Sawston with over one hundred years unexpired 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 home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Sawston can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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 Sawston lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Jonathan, started to get near to the 80-year threshold with the lease on his basement flat in Sawston. Having bought his flat twenty years ago, the length of the lease was of no concern. As luck would have it, he noticed he would imminently be paying way over the odds for a lease extension. Jonathan arranged for a lease extension just under the wire in September. Jonathan and the landlord who owned the flat above subsequently agreed on sum of £5,000 . If he not met the deadline, the sum would have escalated by at least £900.
In 2012 we were phoned by Mr and Mrs. R Díaz who, having took over the lease of a recently refurbished flat in Sawston in April 2000. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Similar residencies in Sawston with 100 year plus lease were in the region of £186,000. The mid-range amount of ground rent was £65 collected per annum. The lease ended in 2084. Taking into account 58 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £24,700 and £28,600 not including expenses.
In 2010 we were contacted by Dr M Laurent who, having purchased a recently refurbished flat in Sawston in February 2005. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Comparative residencies in Sawston with 100 year plus lease were in the region of £250,000. The mid-range amount of ground rent was £50 billed annually. The lease elapsed in 2095. Considering the 69 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of expenses.