The market value of a leasehold property in Swinton depends on how long the lease has remaining. If it is near to or less than 80 years you should envisage difficulties on re-sale, so it is advisable to arrange for the lease to be extended prior to buying. It is ideal to start the process of extending the lease is when the lease still has 82 years unexpired so that all matters can be concluded prior to the eighty year mark. Leasehold Reform legislation entitles Swinton qualifying lessees to an additional term of ninety years on top of the unexpired term, at a peppercorn rent (zero ground rent). The reason of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Swinton with more than 100 years outstanding 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 premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 increased control over the value of your Swinton leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy negotiations with the freeholder of her ground floor flat in Swinton, Chantelle commenced the lease extension process just as her lease was nearing the crucial eighty-year threshold. The lease extension completed in February 2013. The landlord’s costs were kept to an absolute minimum.
In 2010 we were called by Dr C Thompson who, having completed a studio flat in Swinton in June 2009. We are asked if we could estimate the premium would be to prolong the lease by ninety years. Similar flats in Swinton with a long lease were valued around £205,000. The mid-range ground rent payable was £50 invoiced annually. The lease lapsed on 5 October 2104. Given that there were 79 years remaining we calculated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 plus professional charges.
Mr Nathan Roberts acquired a studio apartment in Swinton in June 1999. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Comparative flats in Swinton with a long lease were worth £275,000. The average amount of ground rent was £65 invoiced yearly. The lease ran out in 2093. Considering the 68 years unexpired we approximated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 plus costs.