Swaffham residential property owned on a long lease is a wasting asset because a leaseholder only owns the property for a period of years.
It is generally accepted that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| 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. |
| 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. |
Engaging our service will provide you better control over the value of your Swaffham leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Dexter, started to get near to the 80-year threshold with the lease on his first floor flat in Swaffham. In buying his home two decades ago, the unexpired term was of no importance. Thankfully, he realised he needed to take action soon on a lease extension. Dexter was able to extend his lease just ahead of time last January. Dexter and the landlord in the end agreed on sum of £5,500 . If he failed to meet the deadline, the amount would have escalated by at least £900.
In 2010 we were contacted by Ms Alisha Garcia who, having moved into a studio flat in Swaffham in November 2011. The dilemma was if we could estimate the premium would likely be for a 90 year lease extension. Comparable flats in Swaffham with 100 year plus lease were worth £254,200. The average ground rent payable was £60 billed yearly. The lease elapsed on 8 July 2077. Considering the 51 years remaining we approximated the premium to the landlord to extend the lease to be between £43,700 and £50,600 exclusive of costs.
Dr O Rivera took over the lease of a one bedroom apartment in Swaffham in July 2012. We are asked if we could estimate the premium would be to prolong the lease by 90 years. Comparable flats in Swaffham with 100 year plus lease were valued about £210,600. The mid-range amount of ground rent was £45 collected per annum. The lease ended on 5 April 2088. Taking into account 62 years as a residual term we approximated the premium to the landlord for the lease extension to be between £18,100 and £20,800 not including professional charges.