The value of Saffron Walden leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase materialy once the unexpired lease term is less than 80 years
Leasehold properties in Saffron Walden with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you enhanced control over the value of your Saffron Walden leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last October Joseph, came very near to the eighty-year threshold with the lease on his two bedroom flat in Saffron Walden. Having purchased his property two decades ago, the length of the lease was of minimal interest. Fortunately, he noticed he would imminently be paying an escalated premium for a lease extension. Joseph was able to extend his lease at the eleventh hour last September. Joseph and the freeholder eventually agreed on a premium of £5,500 . If the lease had slid below 80 years, the sum would have escalated by a minimum £1,100.
Last Summer we were called by Mr and Mrs. B Morel , who moved into a one bedroom flat in Saffron Walden in April 1996. We are asked if we could approximate the compensation to the landlord would be for a ninety year lease extension. Comparable residencies in Saffron Walden with 100 year plus lease were in the region of £245,000. The mid-range amount of ground rent was £50 billed per annum. The lease terminated in 2092. Taking into account 68 years unexpired we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including professional charges.
In 2010 we were e-mailed by Mr and Mrs. W Martínez who, having was assigned a lease of a one bedroom apartment in Saffron Walden in August 1999. The question was if we could shed any light on how much (roughly) premium could be to prolong the lease by ninety years. Comparable flats in Saffron Walden with 100 year plus lease were valued around £285,000. The average ground rent payable was £55 billed every twelve months. The lease lapsed in 2103. Having 79 years unexpired we estimated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of fees.