Main reasons to commence your Sawston lease extension

Why you should commence your Sawston lease extension today:

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

When it comes to residential leasehold premises in Sawston, you effectively rent it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially when there are fewer than eighty years left. Leasehold owners in Sawston with a lease nearing 81 years remaining should seriously consider extending it sooner as opposed to later. Once the lease term has below eighty years outstanding, under the relevant Act the freeholder is entitled to calculate and levy a greater amount, assessed on a technical computation, strangely termed as “marriage value” which is due.

An extended lease is almost the same value as a freehold

It is generally considered that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the property will be worth the same as a freehold for decades to come.

Mortgage lenders may not lend with a short lease

Most banks and building societies insist on a lengthy amount of time remaining on any leasehold property before they will contemplate lending on it. Regardless of whether you need a mortgage, you should bear in mind that it is reasonable to assume that someone intending to acquire your property in the future might well do, so where they are unable to secure a mortgage, then the market price of your property could be adversely impacted. In the last decade many banks and building societies have increased the required minimum lease length that they are willing to lend on

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 lawyers 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 Case Summaries:

George, Sawston, Cambridgeshire

Last Summer George, came critically near to the eighty-year mark with the lease on his first floor apartment in Sawston. Having bought his flat twenty years previously, the length of the lease was of no concern. Luckily, it dawned on him that he needed to take steps soon on Extending the lease. George extended the lease just ahead of time last April. George and the freeholder in the end agreed on sum of £6,000 . If he had missed the deadline, the sum would have escalated by at least £950.

Sawston case:

Last Spring we were contacted by Mr A Mason , who purchased a studio flat in Sawston in April 1997. The question was if we could estimate the price would likely be to extend the lease by a further 90 years. Comparable homes in Sawston with an extended lease were valued about £260,000. The average amount of ground rent was £50 invoiced every twelve months. The lease finished in 2098. Considering the 72 years outstanding we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus fees.

Sawston case:

In 2009 we were e-mailed by Dr Andrew Clark who, having completed a one bedroom flat in Sawston in March 1995. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparative residencies in Sawston with a long lease were in the region of £256,600. The average ground rent payable was £60 invoiced every twelve months. The lease terminated on 24 July 2078. Having 52 years unexpired we estimated the compensation to the landlord for the lease extension to be within £39,000 and £45,000 not including professional charges.