Saxmundham residential property held on a long lease is a wasting asset because a leaseholder only owns the property for a period of years.
Leasehold premises in Saxmundham with over one hundred years outstanding on the lease are often regarded as a ‘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 purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| Yorkshire Building Society | 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. |
Retaining our service gives you enhanced control over the value of your Saxmundham leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Gabriel, started to get close to the eighty-year mark with the lease on his purpose- built flat in Saxmundham. In buying his flat 19 years ago, the lease term was of no concern. Luckily, he recognised he needed to take steps soon on Extending the lease. Gabriel extended the lease at the eleventh hour last March. Gabriel and the freeholder via the managing agents subsequently settled on a premium of £5,500 . If he had missed the deadline, the figure would have increased by at least £1,100.
In 2014 we were approached by Dr W Dupont who, having acquired a newly refurbished apartment in Saxmundham in September 2011. We are asked if we could approximate the premium could be to extend the lease by ninety years. Similar homes in Saxmundham with an extended lease were valued about £232,800. The average ground rent payable was £45 billed per annum. The lease came to a finish on 12 July 2090. Considering the 65 years unexpired we approximated the premium to the landlord for the lease extension to be within £13,300 and £15,400 plus fees.
Last Autumn we were approach by Mr and Mrs. K Parker , who purchased a studio apartment in Saxmundham in August 2004. The dilemma was if we could shed any light on how much (approximately) price could be to extend the lease by 90 years. Similar homes in Saxmundham with a long lease were valued around £275,000. The mid-range ground rent payable was £55 billed every twelve months. The lease concluded on 25 July 2101. Taking into account 76 years outstanding we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including legals.