Swanland leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Swanland residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Swanland you would be well advised to check if your lease has between 70 and 90 years remaining. There are good reasons why a Swanland flat owner with a lease having around eighty years unexpired should take action to make sure that a lease extension is put in place without delay
Leasehold properties in Swanland with over one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 Swanland can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and valuer with experience in lease extensions.
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 Swanland lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Spring Lucas, came critically close to the eighty-year mark with the lease on his studio apartment in Swanland. In buying his property two decades ago, the length of the lease was of minimal bearing. by good luck, he realised he would soon be paying an inflated amount for Extending the lease. Lucas extended the lease at the eleventh hour last April. Lucas and the freeholder in the end settled on a premium of £6,000 . If he failed to meet the deadline, the premium would have increased by a minimum £1,100.
Mr and Mrs. T Martin took over the lease of a basement flat in Swanland in January 2005. The question was if we could approximate the compensation to the landlord would be to extend the lease by a further 90 years. Comparable properties in Swanland with an extended lease were valued about £191,400. The average amount of ground rent was £55 invoiced annually. The lease concluded on 13 October 2078. Having 54 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £34,200 and £39,600 not including costs.
Last Spring we were called by Mr and Mrs. G López , who bought a one bedroom apartment in Swanland in May 2011. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Comparable residencies in Swanland with an extended lease were valued around £295,000. The mid-range ground rent payable was £45 invoiced annually. The lease finished in 2098. Considering the 74 years left we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of legals.