There is no doubt about it a leasehold property in Swavesey is a wasting asset as a result of the diminishing lease term. Where the lease has, over 99 years remaining then this decrease may be negligible nevertheless there will become a point in time when a lease has less than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main rational as to why you should extend the lease sooner than later. Most flat owners in Swavesey will meet the qualifying criteria; that being said a lawyer should be able to advise whether you qualify for a lease extension. In limited 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 generally accepted that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the residence 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. |
| Godiva Mortgages | 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. |
| 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. |
Engaging our service gives you increased control over the value of your Swavesey leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
After unsuccessful correspondence with the freeholder of her studio apartment in Swavesey, Hannah commenced the lease extension process just as the lease was coming close to the crucial 80-year threshold. The transaction was finalised in March 2015. The landlord’s costs were restricted to about 550 GBP.
Last month we were approach by Mr and Mrs. F Mason , who took over the lease of a basement apartment in Swavesey in October 2009. We are asked if we could approximate the price could be for a ninety year extension to my lease. Similar premises in Swavesey with 100 year plus lease were in the region of £206,200. The mid-range ground rent payable was £55 invoiced annually. The lease lapsed on 16 October 2082. Taking into account 56 years outstanding we calculated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 plus professional charges.
Last January we were phoned by Dr Jordan Scott , who took over the lease of a newly refurbished apartment in Swavesey in March 2002. We are asked if we could estimate the premium would likely be to prolong the lease by 90 years. Identical premises in Swavesey with a long lease were worth £300,000. The average amount of ground rent was £50 collected yearly. The lease finished in 2102. Considering the 76 years left we calculated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 not including fees.