Unfortunately that a Sawtry residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Sawtry property prices.Once your lease nears 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below eighty years - otherwise a higher premium will be due. The majority of flat owners in Sawtry will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your lawyer for the duration of the formalities.
Leasehold residencies in Sawtry with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Sawtry can be a difficult process. We recommend you secure professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Sawtry lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Jayden, came seriously near to the 80-year threshold with the lease on his basement apartment in Sawtry. In buying his property two decades ago, the length of the lease was of little importance. Thankfully, he realised he needed to take action soon on Extending the lease. Jayden was able to extend his lease at the eleventh hour in April. Jayden and the freeholder in the end settled on the final figure of £6,000 . If the lease had dipped below 80 years, the premium would have become more costly by a minimum £1,025.
In 2013 we were e-mailed by Mr and Mrs. T Girard who, having took over the lease of a purpose-built flat in Sawtry in August 2000. We are asked if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Identical flats in Sawtry with a long lease were valued about £210,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease concluded on 9 February 2106. Having 80 years outstanding we estimated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of expenses.
Mr and Mrs. J James completed a one bedroom flat in Sawtry in April 1998. We are asked if we could approximate the price could be to extend the lease by ninety years. Identical premises in Sawtry with 100 year plus lease were valued around £275,000. The mid-range amount of ground rent was £45 invoiced monthly. The lease elapsed in 2095. Taking into account 69 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 plus costs.