The re-sale value of a leasehold property in Swindon is impacted by how long the lease has left to run. If it is close to or less than eighty years you should envisage problems on re-sale, so it is advisable to arrange for a lease extension before purchasing. Ideally one should start the lease extension process when the lease still has 82 years unexpired so that all matters can be addressed well before the eighty year threshold. Statute entitles Swindon qualifying lessees to obtain a lease extension of ninety years on top of the remaining length of the lease at a peppercorn rent (that is, rent free). The intention of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 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 |
|---|---|
| Birmingham Midshires | |
| Halifax | |
| Leeds Building Society | |
| Santander | |
| Virgin |
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.
In the wake of 6 months of unsuccessful negotiations with the landlord of her studio apartment in Swindon, Lydia started the lease extension process just as her lease was nearing the crucial 80-year threshold. The lease extension was concluded in July 2011. The freeholder’s fees were negotiated to less than 550 GBP.
Dr Muhammad Roberts purchased a newly refurbished flat in Swindon in October 2004. The question was if we could approximate the price would likely be to prolong the lease by 90 years. Comparable residencies in Swindon with a long lease were worth £220,400. The average amount of ground rent was £45 billed per annum. The lease terminated in 2090. Given that there were 64 years left we calculated the compensation to the freeholder to extend the lease to be between £15,200 and £17,600 plus expenses.
In 2010 we were contacted by Mr and Mrs. W Simon who, having owned a garden apartment in Swindon in April 2000. The dilemma was if we could estimate the price would be for a ninety year lease extension. Similar flats in Swindon with a long lease were valued around £270,000. The average ground rent payable was £55 invoiced every twelve months. The lease ended on 17 February 2101. Taking into account 75 years outstanding we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including costs.