Sawston leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Most owners of residential leasehold property in Sawston enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Sawston you really ought to check if your lease has between 70 and 90 years left. There are good reasons why a Sawston flat owner with a lease having around eighty years left should take action to make sure that a lease extension is actioned without delay
It is generally considered that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with procure 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 lawyer we work with provide it.
In the wake of eight months of protracted discussions with the freeholder of her leasehold flat in Sawston, Holly initiated the lease extension process as the eighty year mark was fast approaching. The legal work was concluded in February 2006. The freeholder’s fees were kept to an absolute minimum.
Last year we were phoned by Mr and Mrs. U Phillips , who was assigned a lease of a basement apartment in Sawston in November 2000. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by an additional years. Similar properties in Sawston with 100 year plus lease were in the region of £168,800. The mid-range amount of ground rent was £60 billed monthly. The lease ended on 9 August 2080. Given that there were 55 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £30,400 and £35,200 not including professional charges.
In 2010 we were contacted by Mr Aaron Hill who, having took over the lease of a ground floor apartment in Sawston in April 2006. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Similar properties in Sawston with a long lease were worth £235,200. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease came to a finish in 2091. Given that there were 66 years unexpired we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of fees.