There is no doubt about it a leasehold property in Saffron Walden is a wasting asset as a result of the diminishing lease term. If the residual term has, over 125 years remaining then this decrease may be negligible that being said there will become a stage when a lease has under than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should consider extending sooner as opposed to later. Most flat owners in Saffron Walden will meet the qualifying criteria; nevertheless a conveyancer can advise if you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold properties in Saffron Walden with more than 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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 |
Lease extensions in Saffron Walden can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Saffron Walden lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Owen was the the leasehold owner of a 2 bedroom flat in Saffron Walden on the market with a lease of just over 72 years remaining. Owen on an informal basis spoke with his landlord a well known local-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Owen to invoke his statutory right. Owen obtained expert advice and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
Last Winter we were called by Dr Oscar Fournier , who completed a purpose-built flat in Saffron Walden in April 2006. We are asked if we could estimate the price would likely be to extend the lease by ninety years. Comparative residencies in Saffron Walden with a long lease were in the region of £256,600. The mid-range amount of ground rent was £60 invoiced monthly. The lease finished in 2077. Taking into account 52 years remaining we approximated the premium to the freeholder for the lease extension to be within £39,000 and £45,000 exclusive of legals.
Dr Madeleine Howard bought a basement apartment in Saffron Walden in September 1995. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a ninety year extension to my lease. Similar residencies in Saffron Walden with 100 year plus lease were valued around £218,000. The average amount of ground rent was £45 collected quarterly. The lease elapsed on 17 April 2088. Given that there were 63 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £17,100 and £19,800 not including legals.