The only way is down when it comes to Old Swan lease terms. Old Swan leaseholds that have a remaining term shorter than 80 years will de-escalate in market price at a rapid rate, and the cost of extending your lease will increase.
Leasehold premises in Old Swan with over one hundred years unexpired 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 circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Regardless of whether you are a tenant or a landlord in Old Swan,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Old Swan valuers.
After lengthy negotiations with the landlord of her garden flat in Old Swan, Phoebe started the lease extension process as the eighty year deadline was fast nearing. The lease extension was concluded in July 2008. The freeholder’s fees were kept to an absolute minimum.
In 2013 we were phoned by Dr B Edwards who, having was assigned a lease of a purpose-built flat in Old Swan in January 2007. We are asked if we could estimate the price would be for a ninety year lease extension. Comparable flats in Old Swan with an extended lease were in the region of £250,000. The mid-range amount of ground rent was £50 billed quarterly. The lease ended on 17 March 2095. Given that there were 70 years outstanding we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus fees.
In 2010 we were called by Mrs Victoria Turner who, having owned a first floor apartment in Old Swan in March 2006. We are asked if we could approximate the premium would likely be to extend the lease by an additional years. Identical flats in Old Swan with 100 year plus lease were in the region of £246,800. The mid-range ground rent payable was £60 billed per annum. The lease expired on 16 February 2075. Given that there were 50 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £44,700 and £51,600 exclusive of fees.