Old Swan 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 Old Swan residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Old Swan you would be well advised to check if your lease has between 70 and ninety years left. There are compelling reasons why a Old Swan leaseholder with a lease having around 80 years remaining should take steps to make sure that a lease extension is put in place without delay
Leasehold premises in Old Swan with over one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | 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. |
Lease extensions in Old Swan can be a difficult process. We recommend you get 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.
Following unsuccessful negotiations with the freeholder of her garden apartment in Old Swan, Mollie initiated the lease extension process as the eighty year mark was swiftly advancing. The transaction was finalised in July 2013. The landlord’s costs were restricted to under six hundred pounds.
Last year we were e-mailed by Mr and Mrs. E Lefèvre , who completed a newly refurbished flat in Old Swan in August 2001. The dilemma was if we could estimate the price could be for a 90 year extension to my lease. Comparable properties in Old Swan with an extended lease were in the region of £275,000. The average amount of ground rent was £55 collected yearly. The lease ended in 2103. Considering the 77 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of fees.
Mr and Mrs. V Garcia took over the lease of a basement apartment in Old Swan in September 2010. The dilemma was if we could approximate the premium would be for a ninety year lease extension. Comparative residencies in Old Swan with an extended lease were worth £183,600. The average amount of ground rent was £65 billed yearly. The lease expired on 12 March 2083. Taking into account 57 years unexpired we approximated the premium to the landlord to extend the lease to be within £28,500 and £33,000 plus costs.