The market value of a leasehold property in Saxmundham is impacted by how many years the lease has remaining. If it is near to or less than 80 years you should anticipate difficulties on re-sale, so it is recommended to arrange for the lease to be extended before purchasing. It is preferable to commence the process of extending the lease is when the lease still has 82 years to run so that all matters can be finalised well before the eighty year threshold. Leasehold Reform legislation entitles Saxmundham qualifying lessees to an additional term of ninety years in addition to the existing term, at a peppercorn rent (no ground rent). The purpose of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Saxmundham with more than one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Coventry Building Society | |
| Halifax | |
| Skipton Building Society | |
| The Mortgage Works |
The conveyancers that we work with undertake Saxmundham lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Two years ago Liam, started to get close to the 80-year threshold with the lease on his garden flat in Saxmundham. Having purchased his flat 19 years previously, the unexpired term was of little relevance. Fortunately, he realised he needed to take action soon on Extending the lease. Liam was able to extend his lease at the eleventh hour in January. Liam and the freeholder via the managing agents ultimately settled on a premium of £5,500 . If he had missed the deadline, the premium would have escalated by at least £850.
In 2009 we were phoned by Mr and Mrs. D Sánchez who, having purchased a first floor apartment in Saxmundham in September 2000. The question was if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Comparable flats in Saxmundham with 100 year plus lease were in the region of £270,000. The average ground rent payable was £55 billed annually. The lease elapsed in 2100. Considering the 74 years left we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including fees.
Last Christmas we were approach by Mr and Mrs. E Morel , who bought a newly refurbished apartment in Saxmundham in May 2000. The dilemma was if we could approximate the premium would likely be to prolong the lease by ninety years. Comparable residencies in Saxmundham with an extended lease were in the region of £166,400. The mid-range amount of ground rent was £60 invoiced yearly. The lease elapsed in 2080. Given that there were 54 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £32,300 and £37,400 exclusive of expenses.