Swavesey leases on domestic deteriorating in value. Where your lease has approximately ninety years left, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for the lease extension to be in place before the term of the current lease falls below 80 years - otherwise a higher premium will be due. Flat owners in Swavesey will mostly qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to check your eligibility. In some circumstances you may not qualify. There are also strict deadlines and procedures to follow once the process is initiated so it’s prudent to be guided by a lawyer during the process.
Leasehold properties in Swavesey with over one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | 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 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Swavesey,the lease extension solicitors 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 Swavesey valuers.
Owen was the the leasehold owner of a 2 bedroom flat in Swavesey on the market with a lease of a little over fifty eight years remaining. Owen on an informal basis spoke with his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Owen to invoke his statutory right. Owen obtained expert advice and was able to make a more informed judgement and handle with the matter and readily saleable.
In 2011 we were contacted by Mr and Mrs. D Watson who, having was assigned a lease of a recently refurbished flat in Swavesey in March 1998. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Similar flats in Swavesey with an extended lease were worth £275,000. The average ground rent payable was £65 collected yearly. The lease finished in 2094. Taking into account 68 years remaining we calculated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of professional charges.
Last year we were phoned by Ms Megan Anderson , who owned a one bedroom flat in Swavesey in June 2000. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Identical premises in Swavesey with a long lease were worth £208,600. The average ground rent payable was £60 invoiced every twelve months. The lease ran out on 17 November 2083. Having 57 years remaining we calculated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 plus fees.