The nearer a domestic lease in Sawston gets to zero years unexpired, the the greater the reduction in the value of the property. If the lease has, over one hundred years remaining then this decrease may be negligible nevertheless there will become a point in time when a lease has fewer than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary reason why you should consider extending sooner as opposed to later. Most flat owners in Sawston will meet the qualifying criteria; however a lawyer should be able to advise whether you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold properties in Sawston with in excess of 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant 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. |
| Chelsea Building Society | 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. |
| 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 |
| 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. |
The lawyers that we work with handle Sawston lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Omar owned a conversion apartment in Sawston on the market with a lease of a few days over sixty years outstanding. Omar on an informal basis approached his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 yearly. Ordinarily, ground rent would not be payable on a lease extension were Omar to exercise his statutory right. Omar procured expert legal guidance and was able to make a more informed decision and deal with the matter and readily saleable.
In 2012 we were contacted by Mr and Mrs. Y Norbert who, having took over the lease of a basement flat in Sawston in November 2010. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable flats in Sawston with an extended lease were worth £227,800. The mid-range ground rent payable was £45 billed annually. The lease came to a finish on 21 March 2091. Taking into account 65 years unexpired we calculated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 plus costs.
Last year we were approach by Ms Kelsey Bertrand , who moved into a recently refurbished apartment in Sawston in July 2009. The question was if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Identical premises in Sawston with a long lease were valued around £275,000. The mid-range amount of ground rent was £55 billed every twelve months. The lease ended on 21 February 2102. Taking into account 76 years remaining we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus expenses.