There is no doubt about it a leasehold flat or house in Swanland is a wasting asset as a result of the diminishing lease term. If the residual term has, in excess of 99 years to run then this decrease may be of little impact nevertheless there will become a point in time when a lease has less than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main rational as to why you should extend the lease without delay. Many flat owners in Swanland will meet the qualifying criteria; that being said a lawyer can confirm whether you qualify for a lease extension. 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.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless 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 in-depth market knowledge and the close ties they enjoy with Swanland valuers.
Tyler owned a studio flat in Swanland on the market with a lease of a few days over 61 years left. Tyler informally spoke with his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £100 annually. Ordinarily, ground rent would not be due on a lease extension were Tyler to invoke his statutory right. Tyler procured expert legal guidance and secured satisfactory resolution without resorting to tribunal and readily saleable.
Last Summer we were e-mailed by Mr and Mrs. J Clark , who took over the lease of a first floor apartment in Swanland in May 1996. The question was if we could approximate the price would likely be to extend the lease by 90 years. Comparable properties in Swanland with 100 year plus lease were worth £235,600. The mid-range amount of ground rent was £60 invoiced monthly. The lease came to a finish in 2088. Considering the 62 years unexpired we estimated the premium to the landlord to extend the lease to be between £21,900 and £25,200 exclusive of professional charges.
In 2014 we were approached by Dr L Rose who, having owned a one bedroom apartment in Swanland in March 2007. We are asked if we could shed any light on how much (roughly) premium would be to extend the lease by 90 years. Comparative flats in Swanland with 100 year plus lease were valued about £174,200. The average ground rent payable was £55 billed yearly. The lease end date was on 23 November 2077. Taking into account 51 years unexpired we estimated the premium to the landlord for the lease extension to be between £31,400 and £36,200 not including legals.