The only way is down when it comes to Swindon lease terms. Swindon properties that have a remaining term less than than 80 years will reduce in value at a rapid rate, and the cost of extending your lease will rise.
It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
The conveyancers that we work with undertake Swindon 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 conveyancer we work with provide it.
Alfie owned a conversion flat in Swindon being sold with a lease of a little over 59 years remaining. Alfie on an informal basis spoke with his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 yearly. No ground rent would be payable on a lease extension were Alfie to invoke his statutory right. Alfie procured expert advice and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
Mr and Mrs. D Roberts owned a one bedroom apartment in Swindon in April 1996. The question was if we could approximate the price could be for a ninety year extension to my lease. Comparable homes in Swindon with 100 year plus lease were valued about £183,600. The average ground rent payable was £65 collected yearly. The lease expired on 3 September 2083. Having 57 years remaining we approximated the premium to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of costs.
In 2012 we were contacted by Dr Abbie Rodríguez who, having completed a ground floor apartment in Swindon in May 1996. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Comparable residencies in Swindon with an extended lease were worth £245,000. The mid-range ground rent payable was £45 billed yearly. The lease lapsed in 2094. Taking into account 68 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of legals.