Swansea East leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Most owners of residential leasehold property in Swansea East enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Swansea East you really ought to investigate if your lease has between seventy and 90 years left. There are good reasons why a Swansea East leaseholder with a lease having around eighty years unexpired should take action to ensure that a lease extension is effected without delay
It is conventional wisdom that a property with more than one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Swansea East,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Swansea East valuers.
Last year Matthew, started to get near to the 80-year mark with the lease on his one bedroom apartment in Swansea East. In buying his home two decades ago, the length of the lease was of little significance. Luckily, he noticed he needed to take action soon on a lease extension. Matthew arranged for a lease extension at the eleventh hour last June. Matthew and the freeholder ultimately agreed on the final figure of £5,000 . If he not met the deadline, the amount would have gone up by at least £850.
Mr J Murphy completed a studio apartment in Swansea East in March 2004. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Identical flats in Swansea East with a long lease were in the region of £285,000. The mid-range ground rent payable was £45 invoiced monthly. The lease elapsed in 2096. Given that there were 71 years remaining we approximated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of expenses.
Last month we were phoned by Mr and Mrs. K Moore , who bought a studio apartment in Swansea East in May 2001. We are asked if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Comparative premises in Swansea East with a long lease were valued about £233,200. The mid-range amount of ground rent was £60 collected quarterly. The lease finished in 2086. Given that there were 61 years left we approximated the compensation to the landlord for the lease extension to be between £22,800 and £26,400 exclusive of professional charges.