As the length of the unexpired term of a Swanage domestic lease lessens so does its value and therefore the value of your property. If the lease has, in excess of 125 years remaining then this decrease may be of little impact however there will become a point in time when a lease has less than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease without delay. Most flat owners in Swanage will meet the qualifying criteria; nevertheless a lawyer can advise whether you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Swanage with in excess of one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Nationwide Building Society | |
| TSB | |
| Royal Bank of Scotland |
The lawyers that we work with procure Swanage lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
In the wake of 9 months of lengthy negotiations with the freeholder of her basement apartment in Swanage, Niamh started the lease extension process just as the lease was nearing the crucial 80-year threshold. The transaction was finalised in February 2005. The freeholder’s costs were kept to an absolute minimum.
Dr Lewis Sharif took over the lease of a studio flat in Swanage in October 2012. The dilemma was if we could estimate the price could be for a ninety year lease extension. Similar premises in Swanage with 100 year plus lease were in the region of £255,000. The mid-range ground rent payable was £50 billed per annum. The lease end date was in 2096. Taking into account 70 years left we calculated the compensation to the landlord for the lease extension to be within £10,500 and £12,000 not including legals.
Last Christmas we were called by Dr Lauren David , who owned a first floor flat in Swanage in March 2002. The dilemma was if we could estimate the premium would be for a 90 year extension to my lease. Similar premises in Swanage with a long lease were worth £246,800. The mid-range amount of ground rent was £60 billed per annum. The lease ran out in 2076. Having 50 years outstanding we calculated the compensation to the landlord to extend the lease to be within £44,700 and £51,600 exclusive of legals.