Swinton leases on residential deteriorating in value. if your lease has in the region of 90 years left, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for the lease extension to take place before the term of the existing lease falls below 80 years - otherwise a higher premium will be payable. Flat owners in Swinton will mostly be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to check if you qualify. In some situations you may not qualify. There are also strict deadlines and procedures to comply with once the process is triggered so it’s wise to be guided by a conveyancer during the process.
It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | 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. |
| 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 75 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with procure Swinton 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 conveyancing solicitor we work with provide it.
Samuel owned a high value flat in Swinton being marketed with a lease of fraction over 72 years unexpired. Samuel informally approached his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 per annum. Ordinarily, ground rent would not be due on a lease extension were Samuel to exercise his statutory right. Samuel procured expert advice and secured an acceptable deal without going to tribunal and readily saleable.
Last Christmas we were contacted by Mr T Flores , who took over the lease of a studio apartment in Swinton in August 2000. We are asked if we could estimate the premium would likely be for a ninety year extension to my lease. Comparative properties in Swinton with 100 year plus lease were in the region of £200,000. The average ground rent payable was £50 invoiced annually. The lease lapsed in 2103. Having 77 years unexpired we calculated the premium to the landlord for the lease extension to be within £8,600 and £9,800 plus costs.
Dr Sophia Clarke took over the lease of a newly refurbished apartment in Swinton in October 2007. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Similar homes in Swinton with an extended lease were in the region of £260,200. The mid-range amount of ground rent was £65 billed quarterly. The lease end date was on 9 July 2092. Considering the 66 years left we estimated the premium to the landlord to extend the lease to be between £16,200 and £18,600 plus fees.