With a domestic leasehold property in Swavesey, you effectively rent it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may think about extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater particularly once there are fewer than eighty years remaining. Residents in Swavesey with a lease approaching 81 years unexpired should seriously think of extending it without delay. When a lease has under eighty years outstanding, under the current Act the freeholder can calculate and levy a larger premium, based on a technical calculation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Halifax | |
| Leeds Building Society | |
| Santander | |
| Skipton Building Society |
The lawyers that we work with undertake Swavesey lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
In 2014 Harry, started to get near to the 80-year mark with the lease on his first floor apartment in Swavesey. In buying his property 19 years ago, the unexpired term was of minimal interest. by good luck, he recognised he needed to take steps soon on Extending the lease. Harry was able to extend his lease just in the nick of time in May. Harry and the freeholder via the management company in the end agreed on the final figure of £5,500 . If the lease had dropped to less than 80 years, the sum would have become more exhorbitant by a minimum £1,075.
Mr and Mrs. J Lambert owned a first floor apartment in Swavesey in August 2005. The question was if we could estimate the price would likely be for a 90 year lease extension. Identical properties in Swavesey with 100 year plus lease were in the region of £210,000. The mid-range amount of ground rent was £50 billed quarterly. The lease finished in 2106. Considering the 80 years left we approximated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 plus expenses.
Last Winter we were phoned by Mr and Mrs. W Hall , who was assigned a lease of a studio apartment in Swavesey in March 1998. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by 90 years. Identical homes in Swavesey with an extended lease were in the region of £275,000. The average amount of ground rent was £45 billed per annum. The lease lapsed in 2095. Given that there were 69 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 not including professional charges.