The only way is down when it comes to Swanage lease terms. Swanage leaseholds that have a lease term less than than eighty years will de-escalate in value at a rapid rate, and the cost of extending your lease will go up.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Lease extensions in Swanage can be a difficult process. We recommend you obtain professional help from a conveyancer and surveyor with experience in this area.
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 dealing with Swanage lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Dexter owned a conversion apartment in Swanage on the market with a lease of a few days over 61 years remaining. Dexter on an informal basis spoke with his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 yearly. Ordinarily, ground rent would not be payable on a lease extension were Dexter to invoke his statutory right. Dexter procured expert advice and secured satisfactory deal without resorting to tribunal and ending up with a market value flat.
Mr and Mrs. V Green acquired a ground floor apartment in Swanage in June 2002. The question was if we could shed any light on how much (approximately) price would be to prolong the lease by 90 years. Identical properties in Swanage with 100 year plus lease were worth £227,800. The mid-range amount of ground rent was £45 collected quarterly. The lease expired on 14 January 2090. Having 65 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of fees.
Mrs V Rogers took over the lease of a ground floor apartment in Swanage in September 2011. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Identical residencies in Swanage with a long lease were in the region of £275,000. The mid-range ground rent payable was £55 invoiced per annum. The lease concluded in 2101. Taking into account 76 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus legals.