Swansea City leases on domestic deteriorating in value. if your lease has in the region of ninety years unexpired, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease dips below this level then you begin incurring an additional element called marriage value. Flat owners in Swansea City will usually be legally entitled to a lease extension; however a solicitor will check your eligibility. In some situations you may not be entitled. There are prescribed deadlines and steps to comply with once the process is initiated so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Swansea City with in excess of 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Swansea City can be a difficult process. We recommend you obtain professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Swansea City lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Isaac was the the leasehold owner of a studio flat in Swansea City on the market with a lease of a little over sixty years unexpired. Isaac informally approached his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Isaac to invoke his statutory right. Isaac procured expert advice and secured an acceptable deal informally and ending up with a market value flat.
Last October we were called by Mr and Mrs. J Clark , who was assigned a lease of a one bedroom flat in Swansea City in May 1997. The dilemma was if we could shed any light on how much (approximately) premium would be to prolong the lease by 90 years. Similar homes in Swansea City with a long lease were in the region of £200,000. The mid-range ground rent payable was £50 billed every twelve months. The lease came to a finish on 24 March 2102. Having 77 years outstanding we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus legals.
Dr Jackson Gunderson completed a recently refurbished flat in Swansea City in July 1998. The question was if we could approximate the price would likely be for a 90 year lease extension. Comparative residencies in Swansea City with 100 year plus lease were in the region of £260,200. The mid-range ground rent payable was £65 collected yearly. The lease concluded in 2091. Considering the 66 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £16,200 and £18,600 exclusive of expenses.