The market value of Swanland 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 escalate significantly once the unexpired lease term is less than 80 years
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
The conveyancing solicitors that we work with undertake Swanland 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 conveyancer we work with provide it.
After protracted correspondence with the freeholder of her basement apartment in Swanland, Natasha started the lease extension process as the eighty year deadline was quickly nearing. The legal work completed in July 2015. The landlord’s charges were restricted to less than 500 GBP.
Last Summer we were contacted by Ms Isabel Gómez , who bought a studio apartment in Swanland in July 2006. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Comparable properties in Swanland with an extended lease were worth £205,000. The average amount of ground rent was £50 invoiced yearly. The lease terminated on 24 October 2102. Taking into account 78 years outstanding we approximated the premium to the freeholder for the lease extension to be between £7,600 and £8,800 plus professional charges.
Mr and Mrs. E Miller bought a ground floor flat in Swanland in January 2011. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by 90 years. Comparable homes in Swanland with an extended lease were in the region of £267,600. The average ground rent payable was £65 invoiced annually. The lease ended on 9 March 2091. Taking into account 67 years outstanding we calculated the premium to the landlord for the lease extension to be within £14,300 and £16,400 plus fees.