Owning a flat usually means owning a lease of the property, which has a set term of years. The lease will normally be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Swindon. Inevitably, the period of lease remaining shortens as time goes by. This may pass by relatively unnoticed when the flat or house needs to be sold or refinanced. The shorter the lease the less it is worth and the more it will cost to procure a lease extension. Eligible long lease owners in Swindon have the right to extend the lease for an additional 90 years in accordance with statute. Please give due consideration before putting off your Swindon lease extension. Holding off that expense now simply increases the price you will ultimately have to pay for a lease extension
It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 Swindon,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Swindon valuers.
During the course of the last few months Dexter, came perilously close to the eighty-year threshold with the lease on his basement flat in Swindon. Having bought his property two decades ago, the length of the lease was of no relevance. Thankfully, he recognised he would soon be paying an inflated amount for Extending the lease. Dexter was able to extend his lease at the eleventh hour in June. Dexter and the landlord who owned the flat above ultimately agreed on sum of £5,500 . If he not met the deadline, the price would have gone up by a minimum £1,100.
In 2009 we were called by Mr and Mrs. E Garcia who, having moved into a basement apartment in Swindon in September 1996. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparable properties in Swindon with 100 year plus lease were worth £237,600. The mid-range amount of ground rent was £45 billed per annum. The lease ran out in 2092. Taking into account 67 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £11,400 and £13,200 plus costs.
In 2014 we were called by Mrs Sophie Cooper who, having took over the lease of a newly refurbished flat in Swindon in April 2002. The dilemma was if we could estimate the price could be to extend the lease by 90 years. Identical properties in Swindon with a long lease were worth £280,000. The mid-range amount of ground rent was £55 invoiced monthly. The lease expired in 2103. Taking into account 78 years left we estimated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of professional charges.