Saxmundham leases on residential deteriorating in value. Where your lease has in the region of ninety years unexpired, you should start considering the need for a lease extension. If lease term is under 80 years, you will then have to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Saxmundham will mostly be legally entitled to a lease extension; however a solicitor should be able confirm your eligibility. In some circumstances you may not qualify. There are also strict deadlines 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 residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Saxmundham,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Saxmundham valuers.
Last Winter Muhammad, came very close to the 80-year threshold with the lease on his two bedroom flat in Saxmundham. In buying his flat two decades ago, the lease term was of no significance. Thankfully, he became aware that he would soon be paying an escalated premium for a lease extension. Muhammad extended the lease just ahead of time in March. Muhammad and the landlord who owned the flat above subsequently agreed on sum of £6,000 . If he not met the deadline, the amount would have become more exhorbitant by at least £900.
Mr and Mrs. B Mercier purchased a one bedroom flat in Saxmundham in May 2000. We are asked if we could approximate the compensation to the landlord would be for a ninety year lease extension. Comparable premises in Saxmundham with 100 year plus lease were in the region of £260,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease ran out on 4 November 2097. Taking into account 72 years unexpired we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus professional charges.
Mr and Mrs. L Davis bought a recently refurbished flat in Saxmundham in August 2008. The dilemma was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable residencies in Saxmundham with a long lease were in the region of £261,600. The mid-range ground rent payable was £60 invoiced quarterly. The lease ran out on 2 February 2077. Taking into account 52 years left we approximated the premium to the freeholder to extend the lease to be within £39,000 and £45,000 not including expenses.