There is no doubt about it a leasehold property in Swansea City is a wasting asset as a result of the shortening lease. If the lease has, more than 99 years to run then this decrease may be fractional nevertheless there will become a stage when a lease has less than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should consider extending without delay. Most flat owners in Swansea City will meet the qualifying criteria; however a conveyancer can confirm if you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold premises in Swansea City with in excess of 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Engaging our service will provide you better control over the value of your Swansea City leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following protracted discussions with the freeholder of her garden apartment in Swansea City, Hollie commenced the lease extension process just as her lease was approaching the all-important eighty-year threshold. The legal work was concluded in August 2007. The landlord’s costs were negotiated to about 600 pounds.
Mr and Mrs. R Lewis was assigned a lease of a one bedroom apartment in Swansea City in April 2006. We are asked if we could shed any light on how much (approximately) price would be for a 90 year lease extension. Similar properties in Swansea City with 100 year plus lease were in the region of £243,000. The mid-range ground rent payable was £65 collected per annum. The lease ended on 20 October 2089. Given that there were 63 years remaining we calculated the premium to the freeholder to extend the lease to be between £20,000 and £23,000 plus professional charges.
Mrs Bethan Smith purchased a one bedroom apartment in Swansea City in April 2008. The dilemma was if we could approximate the price would likely be for a ninety year lease extension. Identical premises in Swansea City with a long lease were valued about £181,600. The average amount of ground rent was £55 collected annually. The lease concluded in 2078. Considering the 52 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £30,400 and £35,200 plus costs.