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. It is the case that most Sawston tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Sawston you should investigate if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Engaging our service gives you enhanced control over the value of your Sawston leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to protracted correspondence with the landlord of her purpose-built flat in Sawston, Aimee commenced the lease extension process as the 80 year threshold was rapidly coming. The lease extension completed in August 2011. The freeholder’s costs were kept to an absolute minimum.
Mr and Mrs. A Hernández was assigned a lease of a one bedroom flat in Sawston in April 1998. We are asked if we could estimate the premium would likely be to prolong the lease by 90 years. Similar residencies in Sawston with a long lease were in the region of £242,600. The mid-range amount of ground rent was £45 billed yearly. The lease ran out on 1 November 2092. Given that there were 67 years remaining we approximated the compensation to the landlord for the lease extension to be within £11,400 and £13,200 not including professional charges.
Dr Aarav Stewart moved into a first floor flat in Sawston in June 2004. The question was if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Similar homes in Sawston with a long lease were worth £280,000. The mid-range amount of ground rent was £55 billed monthly. The lease elapsed on 16 May 2103. Having 78 years outstanding we calculated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 not including legals.