There is no doubt about it a leasehold flat or house in Old Swan is a wasting asset as a result of the diminishing lease term. Where the residual term has, in excess of one hundred years to run then this decrease may be fractional that being said there will become a stage when a lease has under than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should consider extending without delay. Most flat owners in Old Swan will meet the qualifying criteria; nevertheless a conveyancing solicitor can advise if you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold residencies in Old Swan with over 100 years remaining 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 home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Halifax | Minimum 70 years from the date 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. |
| 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 Old Swan can be a difficult process. We recommend you procure guidance 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 Old Swan lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Jamie, came precariously close to the eighty-year mark with the lease on his first floor apartment in Old Swan. Having purchased his home two decades ago, the lease term was of minimal significance. Fortunately, it dawned on him that he needed to take steps soon on Extending the lease. Jamie was able to extend his lease just under the wire last April. Jamie and the freeholder eventually agreed on sum of £5,000 . If he had missed the deadline, the premium would have escalated by at least £975.
In 2010 we were approached by Dr L Bonnet who, having acquired a ground floor flat in Old Swan in August 2004. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by an additional years. Similar flats in Old Swan with an extended lease were in the region of £264,000. The mid-range ground rent payable was £60 collected yearly. The lease terminated on 6 February 2079. Taking into account 53 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £37,100 and £42,800 exclusive of fees.
Last Christmas we were approach by Dr K Hall , who bought a purpose-built apartment in Old Swan in September 1996. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Identical properties in Old Swan with 100 year plus lease were worth £220,400. The mid-range amount of ground rent was £45 collected yearly. The lease elapsed in 2090. Taking into account 64 years unexpired we estimated the compensation to the landlord for the lease extension to be within £15,200 and £17,600 not including expenses.