Sawston leases on domestic properties are gradually losing value. Where your lease has about 90 years left, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease drops below this level then you start paying an additional element called marriage value. Leasehold owners in Sawston will mostly be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In certain circumstances you may not qualify. There are prescribed deadlines and steps to comply with once the process has started so it’s best to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Sawston,the lease extension solicitors 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 Sawston valuers.
Subsequent to lengthy negotiations with the freeholder of her ground floor apartment in Sawston, Isobel commenced the lease extension process just as her lease was nearing the critical 80-year threshold. The transaction completed in April 2012. The freeholder’s costs were negotiated to under 550 GBP.
In 2010 we were contacted by Dr F Turner who, having moved into a first floor apartment in Sawston in October 2000. The question was if we could estimate the premium would be for a 90 year extension to my lease. Identical properties in Sawston with 100 year plus lease were valued about £275,000. The mid-range amount of ground rent was £55 collected annually. The lease finished on 23 March 2103. Taking into account 77 years remaining we estimated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 plus expenses.
In 2009 we were e-mailed by Ms P Mercier who, having acquired a one bedroom flat in Sawston in June 2007. We are asked if we could approximate the compensation to the landlord would be to extend the lease by ninety years. Identical premises in Sawston with a long lease were worth £183,600. The mid-range amount of ground rent was £65 invoiced yearly. The lease ended in 2083. Given that there were 57 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 plus costs.