Swanley leases on residential deteriorating in value. Where your lease has in the region of 90 years unexpired, you should start thinking about a lease extension. If lease term dips under eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Swanley will usually be legally entitled to a lease extension; however a solicitor should be able confirm if you qualify. In certain cases you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold properties in Swanley with in excess of one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Godiva Mortgages | 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. |
| 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. |
Retaining our service gives you increased control over the value of your Swanley leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
After lengthy discussions with the freeholder of her leasehold apartment in Swanley, Erin initiated the lease extension process as the 80 year mark was fast advancing. The legal work completed in November 2010. The landlord’s charges were restricted to approximately 450 pounds.
In 2010 we were e-mailed by Mr and Mrs. N Hill who, having purchased a studio apartment in Swanley in April 2006. We are asked if we could estimate the price would likely be to extend the lease by a further 90 years. Comparative properties in Swanley with 100 year plus lease were valued about £166,400. The average amount of ground rent was £60 collected yearly. The lease expired in 2080. Having 54 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £32,300 and £37,400 not including fees.
An example of a Lease Extension case for a Swanley flat is Various @ Colombus Square in January 2012. the Tribunal calculated the premiums to be paid for new leases for each of the flats in Mariners Walk to be £3822 and the premium to be paid for the new lease of 2 Knights Court to be £4439. This case was in relation to 13 flats. The remaining number of years on the lease was 76 years.