The market value of Saxmundham leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase materialy once the unexpired lease term is below than 80 years
Leasehold residencies in Saxmundham with over one hundred 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 home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you better control over the value of your Saxmundham leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Dylan owned a 2 bedroom flat in Saxmundham being marketed with a lease of fraction over sixty years remaining. Dylan informally contacted his freeholder a well known Manchester-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 annually. Ordinarily, ground rent would not be due on a lease extension were Dylan to invoke his statutory right. Dylan obtained expert advice and was able to make a more informed judgement and handle with the matter and readily saleable.
In 2011 we were approached by Ms Rosie Bennett who, having acquired a first floor flat in Saxmundham in July 1996. The dilemma was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparative residencies in Saxmundham with an extended lease were in the region of £242,600. The average ground rent payable was £45 collected every twelve months. The lease came to a finish in 2093. Taking into account 67 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £11,400 and £13,200 plus fees.
In 2009 we were e-mailed by Mr and Mrs. K Bertrand who, having completed a one bedroom apartment in Saxmundham in February 1996. We are asked if we could estimate the premium could be for a ninety year lease extension. Identical premises in Saxmundham with a long lease were valued about £280,000. The mid-range amount of ground rent was £55 billed yearly. The lease ran out in 2104. Given that there were 78 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 plus legals.