Swaffham leases on domestic deteriorating in value. Where your lease has approximately 90 years left, you should start thinking about a lease extension. If lease term is under eighty years, you will then have to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Swaffham will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancer to confirm your eligibility. In certain cases you may not qualify. There are prescribed timetables and procedures to follow once the process has started so it’s wise to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Swaffham,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Swaffham valuers.
Matthew owned a studio flat in Swaffham being marketed with a lease of fraction over sixty years outstanding. Matthew informally contacted his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Matthew to exercise his statutory right. Matthew procured expert legal guidance and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
In 2014 we were contacted by Ms P Moreau who, having purchased a studio apartment in Swaffham in May 1998. The question was if we could estimate the premium would be to prolong the lease by a further 90 years. Comparative properties in Swaffham with a long lease were valued about £200,800. The mid-range amount of ground rent was £65 invoiced monthly. The lease elapsed in 2085. Having 60 years remaining we calculated the premium to the freeholder to extend the lease to be between £20,900 and £24,200 not including costs.
Ms G Garcia moved into a one bedroom flat in Swaffham in January 2011. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by ninety years. Comparable homes in Swaffham with a long lease were in the region of £255,000. The average amount of ground rent was £50 billed quarterly. The lease finished on 23 May 2096. Given that there were 71 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including expenses.