Unfortunately that a Swanland residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Swanland property prices.Where your lease has approximately ninety years left, you should start considering a lease extension. If lease term slips below eighty years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most leasehold owners in Swanland will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer throughout the process.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years left, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Swanland,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Swanland valuers.
Seth was the the leasehold owner of a conversion flat in Swanland on the market with a lease of a little over fifty eight years remaining. Seth on an informal basis contacted his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 yearly. Ordinarily, ground rent would not be due on a lease extension were Seth to exercise his statutory right. Seth obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
Last Autumn we were e-mailed by Ms Robyn Martin , who owned a basement flat in Swanland in October 2000. The dilemma was if we could estimate the price would be for a ninety year extension to my lease. Similar homes in Swanland with a long lease were worth £275,000. The mid-range amount of ground rent was £65 collected quarterly. The lease ran out on 23 September 2093. Having 68 years left we approximated the premium to the landlord for the lease extension to be within £12,400 and £14,200 plus legals.
Last Summer we were approach by Dr C Rodríguez , who took over the lease of a first floor flat in Swanland in June 2004. The dilemma was if we could estimate the premium could be to extend the lease by 90 years. Similar premises in Swanland with a long lease were worth £208,600. The mid-range amount of ground rent was £60 collected yearly. The lease ran out on 26 June 2082. Given that there were 57 years left we approximated the compensation to the landlord to extend the lease to be within £30,400 and £35,200 exclusive of fees.