It’s a harsh certainty that a Swanland residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Swanland property prices.Where your lease has approximately 90 years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than 80 years - otherwise a higher amount will be due. The majority of leasehold owners in Swanland will be able to extend under the legislation; however a lawyer should be able to clarify if you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer throughout the formalities.
Leasehold properties in Swanland with more than one hundred years outstanding 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 upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a landlord in Swanland,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Swanland valuers.
Last October Connor, started to get near to the 80-year threshold with the lease on his basement apartment in Swanland. Having purchased his flat 19 years previously, the lease term was of little importance. Luckily, it dawned on him that he would soon be paying way over the odds for Extending the lease. Connor arranged for a lease extension at the eleventh hour last May. Connor and the landlord who owned the flat above ultimately settled on a premium of £5,000 . If he not met the deadline, the sum would have become more costly by at least £1,025.
Mr and Mrs. L Gómez moved into a purpose-built apartment in Swanland in April 2006. The dilemma was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Identical flats in Swanland with a long lease were valued about £210,000. The mid-range ground rent payable was £50 collected every twelve months. The lease concluded on 6 September 2105. Given that there were 80 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of professional charges.
In 2014 we were phoned by Mr Ben Taylor who, having purchased a first floor apartment in Swanland in August 2002. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Comparative premises in Swanland with a long lease were worth £275,000. The average amount of ground rent was £45 invoiced quarterly. The lease end date was in 2094. Considering the 69 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of costs.