For those whose Swanland flat is held on a long lease, our message is clear – if nothing is done, the property will eventually revert to the freeholder, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Swanland 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 in-depth market knowledge procuring Swanland lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing protracted discussions with the freeholder of her ground floor apartment in Swanland, Poppy initiated the lease extension process as the eighty year threshold was swiftly nearing. The legal work was finalised in May 2013. The landlord’s costs were kept to an absolute minimum.
Last Spring we were contacted by Dr R Norbert , who completed a purpose-built flat in Swanland in November 2006. The question was if we could shed any light on how much (approximately) price could be to prolong the lease by 90 years. Comparable premises in Swanland with a long lease were valued around £285,000. The mid-range amount of ground rent was £45 collected yearly. The lease came to a finish on 4 June 2096. Taking into account 71 years remaining we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including professional charges.
Last month we were phoned by Dr Riley Watson , who was assigned a lease of a one bedroom apartment in Swanland in September 2003. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Similar properties in Swanland with an extended lease were in the region of £225,800. The mid-range amount of ground rent was £60 invoiced yearly. The lease terminated in 2085. Taking into account 60 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £25,700 and £29,600 plus legals.