Chances are that where you own a flat in Swanland you actually own a long leasehold interest over your property
It is generally considered that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Regardless of whether you are a tenant or a landlord in Swanland,the lease extension solicitors 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.
Alex was the the leasehold proprietor of a 2 bedroom flat in Swanland on the market with a lease of a little over sixty years unexpired. Alex on an informal basis approached his landlord a well known local-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 yearly. Ordinarily, ground rent would not be payable on a lease extension were Alex to exercise his statutory right. Alex obtained expert legal guidance and secured satisfactory resolution without going to tribunal and readily saleable.
Last Winter we were contacted by Mr and Mrs. H Scott , who owned a one bedroom apartment in Swanland in November 2006. The dilemma was if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Comparative properties in Swanland with 100 year plus lease were valued about £191,400. The average ground rent payable was £55 billed quarterly. The lease came to a finish in 2080. Taking into account 54 years remaining we estimated the compensation to the landlord to extend the lease to be between £34,200 and £39,600 not including legals.
Last month we were e-mailed by Mr and Mrs. B Laurent , who was assigned a lease of a garden apartment in Swanland in November 1996. We are asked if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Comparable properties in Swanland with a long lease were worth £295,000. The average amount of ground rent was £45 invoiced monthly. The lease elapsed on 5 May 2100. Taking into account 74 years remaining we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus costs.