Main reasons to commence your Sawtry lease extension

Top reasons for lease extension now:

A Sawtry lease depreciates with the years remaining on the lease.

The basic rule is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Sawtry have the right to extend the lease for an additional ninety years under legislation. Do think carefully before delaying your Sawtry lease extension. Shelving the costs today simply escalates the amount you will eventually have to pay for a lease extension.

Sawtry property with a lease extension has roughly the same value as a freehold

Leasehold properties in Sawtry with over 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.

Banks and Building Societies may not finance a property with a short lease

Most banks have constrained their lending criteria in recent years and borrowers are encountering difficulties in arranging funding or re-mortgage against flats with shorter lease terms, particularly below 75 years as they are considered to be inadequate for lending purposes.

What makes us experts in Sawtry lease extensions?

Regardless of whether you are a tenant or a landlord in Sawtry,the lease extension lawyers that we work with will always be willing 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.

Sawtry Lease Extension Case Studies:

Emily, Sawtry, Cambridgeshire,

After lengthy discussions with the landlord of her purpose-built flat in Sawtry, Emily initiated the lease extension process as the 80 year threshold was fast approaching. The transaction was finalised in March 2011. The freeholder’s charges were kept to an absolute minimum.

Sawtry case:

Last Autumn we were phoned by Mr and Mrs. D Harris , who acquired a one bedroom flat in Sawtry in February 1999. The dilemma was if we could approximate the premium would be for a 90 year lease extension. Identical flats in Sawtry with 100 year plus lease were valued around £260,200. The mid-range amount of ground rent was £65 invoiced quarterly. The lease concluded on 1 February 2092. Having 66 years remaining we approximated the premium to the landlord for the lease extension to be between £16,200 and £18,600 plus legals.

Sawtry case:

In 2009 we were phoned by Mr and Mrs. F Lefèvre who, having completed a ground floor apartment in Sawtry in July 2008. The question was if we could estimate the premium would likely be to extend the lease by a further 90 years. Comparable premises in Sawtry with 100 year plus lease were worth £198,800. The average amount of ground rent was £55 invoiced quarterly. The lease terminated on 10 July 2081. Taking into account 55 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £33,300 and £38,400 plus costs.