Sawtry leases on domestic deteriorating in value. if your lease has about 90 years unexpired, you should start considering the need for a lease extension. If lease term dips under 80 years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Sawtry will mostly qualify for a lease extension; however a solicitor will confirm if you qualify. In some cases you may not be entitled. There are prescribed timetables and formalities to comply with once the process has started so it’s prudent to be guided by a conveyancing solicitor during the process.
It is generally considered that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Sawtry,the lease extension lawyers 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 Sawtry valuers.
Subsequent to unsuccessful negotiations with the landlord of her studio flat in Sawtry, Harriet initiated the lease extension process just as the lease was coming close to the all-important 80-year mark. The legal work completed in April 2008. The landlord’s costs were kept to an absolute minimum.
Mrs Rebecca Ali bought a ground floor apartment in Sawtry in October 2001. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Comparable homes in Sawtry with an extended lease were valued about £243,000. The mid-range amount of ground rent was £65 invoiced quarterly. The lease ended on 24 February 2088. Given that there were 63 years outstanding we calculated the compensation to the landlord for the lease extension to be between £20,000 and £23,000 not including professional charges.
In 2011 we were phoned by Dr Omar Cox who, having was assigned a lease of a basement apartment in Sawtry in October 2006. The question was if we could estimate the premium could be to extend the lease by a further 90 years. Similar homes in Sawtry with a long lease were worth £181,600. The average amount of ground rent was £55 invoiced every twelve months. The lease finished on 9 February 2077. Taking into account 52 years left we approximated the premium to the freeholder for the lease extension to be between £30,400 and £35,200 plus legals.