Top reasons for Sawston lease extension

Main reasons to commence your Sawston lease extension today:

A Sawston lease depreciates with the years remaining on the lease.

With a residential leasehold premises in Sawston, you are in fact renting it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater particularly when there are fewer than 80 years remaining. Leasehold owners in Sawston with a lease nearing 81 years unexpired should seriously think of extending it without delay. When the lease term has less than 80 years remaining, under the relevant legislation the freeholder is entitled to calculate and charge a larger premium, based on a technical multiplication, known as “marriage value” which is payable.

Sawston property with a lease extension has roughly the same value as a freehold

It is generally considered that a property with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years left, the residence will be worth the same as a freehold for many years in the future.

Lending institutions may decide not to finance a property on a short lease

The trend since over the last decade has been for lenders to tighten lending criteria generally - this has extended to the types of security over which the home loan is to be charged. This has meant the minimum number of years remaining under the lease required by banks has increased. Historically mortgage companies would lend on a lease with 25 years plus the term of the loan - typically 50 year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many now have a minimum term of 75 years as standard.

Get in touch with one of our Sawston lease extension solicitors or enfranchisement solicitors

Irrespective of whether you are a tenant or a landlord in Sawston,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 Sawston valuers.

Sawston Lease Extension Example Cases:

Eli, Sawston, Cambridgeshire,

Eli owned a 2 bedroom flat in Sawston on the market with a lease of just over sixty years left. Eli on an informal basis spoke with his landlord being a well known local-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Eli to invoke his statutory right. Eli obtained expert advice and secured satisfactory deal informally and ending up with a market value flat.

Sawston case:

In 2009 we were called by Dr Henry Brown who, having moved into a one bedroom apartment in Sawston in April 2006. We are asked if we could estimate the premium could be to extend the lease by a further 90 years. Comparative properties in Sawston with an extended lease were valued around £200,800. The mid-range ground rent payable was £65 invoiced monthly. The lease ran out in 2086. Considering the 60 years unexpired we approximated the premium to the freeholder to extend the lease to be within £20,900 and £24,200 plus legals.

Sawston case:

Ms Olivia Peterson bought a basement apartment in Sawston in May 1997. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable homes in Sawston with 100 year plus lease were in the region of £255,000. The average amount of ground rent was £50 billed per annum. The lease ended in 2097. Having 71 years left we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of expenses.