Swavesey leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most Swavesey tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Swavesey you would be well advised to investigate if your lease has between seventy and 90 years left. There are compelling reasons why a Swavesey leaseholder with a lease having around 80 years left should take action to make sure that a lease extension is actioned without delay
It is conventional wisdom that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the property will be worth the same as a freehold for many years ahead.
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with procure 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.
Last Summer David, started to get close to the 80-year threshold with the lease on his leasehold flat in Swavesey. Having purchased his property two decades ago, the length of the lease was of little concern. by good luck, it dawned on him that he needed to take action soon on Extending the lease. David was able to extend his lease at the eleventh hour last March. David and the freeholder via the managing agents ultimately agreed on the final figure of £5,500 . If he had missed the deadline, the amount would have gone up by at least £875.
Last Christmas we were called by Dr R Michel , who acquired a first floor apartment in Swavesey in January 1999. We are asked if we could estimate the compensation to the landlord would be for a 90 year lease extension. Identical premises in Swavesey with an extended lease were valued about £243,000. The mid-range ground rent payable was £65 invoiced every twelve months. The lease concluded on 13 May 2089. Having 63 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £20,000 and £23,000 not including expenses.
Last Summer we were contacted by Dr Elijah Harris , who was assigned a lease of a garden apartment in Swavesey in April 2006. The question was if we could approximate the premium could be for a ninety year extension to my lease. Similar flats in Swavesey with a long lease were worth £181,600. The average amount of ground rent was £55 invoiced per annum. The lease terminated in 2078. Taking into account 52 years outstanding we approximated the premium to the freeholder to extend the lease to be between £30,400 and £35,200 exclusive of costs.