The market value of Swinton leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate significantly once the unexpired lease term is less than 80 years
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Swinton can be a difficult process. We recommend you procure professional help from a lawyer and valuer 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 in-depth market knowledge dealing with Swinton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Gabriel, came very close to the 80-year mark with the lease on his basement flat in Swinton. Having purchased his home 19 years previously, the lease term was of no concern. Thankfully, he recognised he needed to take steps soon on Extending the lease. Gabriel arranged for a lease extension just in the nick of time in May. Gabriel and the freeholder ultimately settled on an amount of £6,000 . If the lease had slid to less than eighty years, the figure would have increased by a minimum £900.
In 2010 we were contacted by Ms Alicia Clark who, having acquired a one bedroom flat in Swinton in February 2010. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year extension to my lease. Similar flats in Swinton with 100 year plus lease were in the region of £205,000. The average ground rent payable was £50 billed yearly. The lease expired on 6 April 2105. Considering the 79 years left we calculated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of legals.
Mr L Moore bought a basement flat in Swinton in August 2002. The dilemma was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparative homes in Swinton with 100 year plus lease were worth £275,000. The average ground rent payable was £65 billed monthly. The lease expired on 27 March 2094. Considering the 68 years outstanding we calculated the premium to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of fees.