Swanland leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. The majority of owners of residential leasehold property in Swanland enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Swanland you really ought to check if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
Regardless of whether you are a tenant or a landlord in Swanland,the lease extension lawyers 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 Swanland valuers.
In the wake of 6 months of unsuccessful discussions with the freeholder of her garden apartment in Swanland, Kelsey commenced the lease extension process as the eighty year deadline was fast nearing. The lease extension completed in February 2009. The freeholder’s charges were restricted to slightly above 650 GBP.
Mrs A Morris moved into a purpose-built apartment in Swanland in January 2007. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by 90 years. Identical properties in Swanland with a long lease were in the region of £201,200. The mid-range ground rent payable was £55 collected per annum. The lease elapsed in 2081. Having 56 years outstanding we estimated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 exclusive of costs.
Ms K Martínez took over the lease of a one bedroom flat in Swanland in March 2006. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Similar properties in Swanland with an extended lease were valued about £300,000. The average ground rent payable was £50 billed per annum. The lease terminated in 2101. Considering the 76 years unexpired we approximated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of professional charges.