Swansea East leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Swansea East enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Swansea East you must see if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
It is generally considered that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years left, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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 |
Regardless of whether you are a tenant or a freeholder in Swansea East,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Swansea East valuers.
Harrison owned a conversion flat in Swansea East on the market with a lease of fraction over fifty eight years outstanding. Harrison on an informal basis approached his freeholder a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Harrison to exercise his statutory right. Harrison obtained expert advice and secured an acceptable deal without resorting to tribunal and sell the property.
Ms Caitlin Richardson purchased a studio flat in Swansea East in March 2009. We are asked if we could shed any light on how much (approximately) premium would be to prolong the lease by ninety years. Comparable properties in Swansea East with a long lease were valued about £252,800. The average ground rent payable was £65 billed yearly. The lease came to a finish in 2090. Having 65 years left we approximated the premium to the landlord for the lease extension to be between £17,100 and £19,800 plus costs.
In 2014 we were approached by Mr and Mrs. G Díaz who, having was assigned a lease of a studio apartment in Swansea East in September 1997. The dilemma was if we could approximate the premium could be to extend the lease by 90 years. Similar properties in Swansea East with a long lease were worth £191,400. The average ground rent payable was £55 billed quarterly. The lease came to a finish on 7 September 2079. Taking into account 54 years remaining we calculated the premium to the freeholder to extend the lease to be between £34,200 and £39,600 exclusive of fees.