Sawtry leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most Sawtry tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Sawtry you should investigate if your lease has between 70 and 90 years remaining. There are good reasons why a Sawtry leaseholder with a lease having around 80 years unexpired should take action to ensure that a lease extension is actioned without delay
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to 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. |
| Coventry Building Society | 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord 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.
Following lengthy discussions with the freeholder of her leasehold flat in Sawtry, Katherine initiated the lease extension process as the 80 year mark was fast advancing. The legal work was concluded in November 2012. The landlord’s charges were kept to an absolute minimum.
Ms G Lee took over the lease of a studio apartment in Sawtry in June 2006. The dilemma was if we could estimate the price could be to prolong the lease by a further 90 years. Similar properties in Sawtry with a long lease were in the region of £275,000. The mid-range amount of ground rent was £65 billed per annum. The lease expired on 11 September 2094. Considering the 68 years unexpired we approximated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 not including expenses.
Last Winter we were phoned by Ms A Vincent , who owned a first floor flat in Sawtry in August 2000. We are asked if we could approximate the price would likely be for a ninety year lease extension. Comparable homes in Sawtry with an extended lease were worth £208,600. The mid-range amount of ground rent was £60 billed per annum. The lease terminated in 2083. Given that there were 57 years outstanding we approximated the premium to the freeholder to extend the lease to be within £30,400 and £35,200 plus costs.