The market value of a leasehold property in Swanage depends on how many years the lease has left to run. If it is near to or fewer than 80 years you should anticipate problems on re-sale, so it is recommended to arrange for the lease to be extended ahead of purchasing. It is preferable to commence the lease extension process when the lease still has 82 years to run so that all matters can be finalised well before the 80 year mark. Leasehold Reform legislation enables Swanage qualifying lessees to a ninety year extension added to their unexpired lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Swanage with in excess of one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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 |
| 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. |
Retaining our service gives you increased control over the value of your Swanage leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Eliot, came critically close to the eighty-year threshold with the lease on his leasehold flat in Swanage. Having bought his flat twenty years previously, the unexpired term was of little bearing. Fortunately, he realised he needed to take steps soon on Extending the lease. Eliot extended the lease at the eleventh hour last July. Eliot and the landlord who owned the flat above ultimately agreed on sum of £6,000 . If the lease had dipped lower than 80 years, the price would have escalated by at least £1,125.
Mr Luca Bell purchased a studio apartment in Swanage in February 2003. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by 90 years. Comparative flats in Swanage with a long lease were valued around £290,000. The mid-range ground rent payable was £60 billed per annum. The lease ran out in 2105. Given that there were 80 years remaining we calculated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of expenses.
Mr K Baker moved into a studio flat in Swanage in October 2008. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year extension to my lease. Identical residencies in Swanage with a long lease were valued around £200,800. The average ground rent payable was £65 invoiced monthly. The lease terminated on 24 May 2085. Considering the 60 years unexpired we calculated the premium to the freeholder to extend the lease to be within £20,900 and £24,200 plus professional charges.