Swanscombe 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 your lease becomes more expensive. It is the case that most Swanscombe tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Swanscombe you really ought to check if your lease has between 70 and ninety years remaining. There are compelling reasons why a Swanscombe leaseholder with a lease having around eighty years left should take steps to ensure that a lease extension is actioned without delay
Leasehold premises in Swanscombe with in excess of one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value 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 justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Swanscombe can be a difficult process. We recommend you obtain professional help from a lawyer and valuer 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 procuring Swanscombe lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
18 months ago David, came perilously close to the eighty-year threshold with the lease on his two bedroom flat in Swanscombe. In buying his home twenty years previously, the lease term was of little interest. Fortunately, it dawned on him that he would imminently be paying an escalated premium for Extending the lease. David arranged for a lease extension just in the nick of time in August. David and the landlord who owned the flat above eventually settled on an amount of £5,500 . If he not met the deadline, the amount would have gone up by at least £1,125.
Last month we were e-mailed by Dr C Howard , who bought a one bedroom apartment in Swanscombe in November 1997. The dilemma was if we could approximate the premium would likely be to extend the lease by a further 90 years. Similar properties in Swanscombe with a long lease were worth £225,400. The average ground rent payable was £45 collected annually. The lease finished on 17 November 2090. Having 64 years outstanding we approximated the compensation to the landlord to extend the lease to be between £15,200 and £17,600 exclusive of professional charges.
An example of a Lease Extension case for a Swanscombe residence 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 affected 13 flats. The unexpired residue of the current lease was 76 years.