With a residential leasehold premises in Swindon, you are in fact renting it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are fewer than 80 years left. Leasehold owners in Swindon with a lease nearing 81 years remaining should seriously consider extending it without delay. Once a lease has under eighty years remaining, under the relevant statute the freeholder is entitled to calculate and charge a greater amount, assessed on a technical multiplication, known as “marriage value” which is due.
Leasehold residencies in Swindon with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| 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. |
Lease extensions in Swindon can be a difficult process. We recommend you secure professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Swindon lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Twenty four months ago Alfie, started to get close to the 80-year mark with the lease on his first floor flat in Swindon. In buying his property twenty years previously, the length of the lease was of little concern. As luck would have it, it dawned on him that he needed to take action soon on a lease extension. Alfie arranged for a lease extension just under the wire in April. Alfie and the freeholder via the managing agents in the end settled on sum of £5,000 . If the lease had dropped lower than 80 years, the figure would have increased by at least £950.
Dr Gabriel Parker acquired a one bedroom flat in Swindon in October 2010. The dilemma was if we could approximate the price would likely be to extend the lease by 90 years. Comparative homes in Swindon with an extended lease were valued around £256,600. The mid-range amount of ground rent was £60 billed yearly. The lease expired in 2078. Having 52 years left we calculated the premium to the freeholder to extend the lease to be within £41,800 and £48,400 plus legals.
In 2010 we were e-mailed by Dr W Bennett who, having was assigned a lease of a basement apartment in Swindon in February 2002. The dilemma was if we could estimate the premium would be for a 90 year lease extension. Comparative homes in Swindon with a long lease were in the region of £218,000. The average amount of ground rent was £45 invoiced yearly. The lease concluded in 2089. Taking into account 63 years outstanding we calculated the premium to the landlord for the lease extension to be between £17,100 and £19,800 exclusive of expenses.