Unfortunately that a Swinton residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Swinton property prices.Where your lease has approximately 90 years left, you need to start considering a lease extension. If lease term falls under 80 years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most flat owners in Swinton will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth roughly 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 in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Swinton,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 experience and the close ties they enjoy with Swinton valuers.
Two years ago Charlie, came dangerously close to the 80-year threshold with the lease on his garden apartment in Swinton. Having purchased his home 19 years previously, the length of the lease was of minimal significance. Thankfully, he realised he would imminently be paying an escalated premium for Extending the lease. Charlie extended the lease just under the wire last September. Charlie and the freeholder in the end settled on the final figure of £5,500 . If he not met the deadline, the amount would have become more costly by at least £1,075.
Mr C Khan owned a one bedroom flat in Swinton in February 1999. The dilemma was if we could estimate the price would be to prolong the lease by an additional years. Comparable homes in Swinton with a long lease were valued about £240,600. The average amount of ground rent was £60 billed per annum. The lease concluded in 2088. Given that there were 62 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £21,900 and £25,200 not including professional charges.
Mr and Mrs. O Thompson took over the lease of a studio apartment in Swinton in January 2010. The dilemma was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Similar homes in Swinton with an extended lease were in the region of £174,200. The mid-range amount of ground rent was £55 invoiced annually. The lease terminated in 2077. Taking into account 51 years as a residual term we estimated the premium to the landlord to extend the lease to be within £31,400 and £36,200 plus fees.