The market value of Swanscombe leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate substantially once the remaining term is less than 80 years
Leasehold properties in Swanscombe with in excess of one hundred years remaining on the lease are sometimes 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 to be gained by purchasing the freehold unless savings on ground rent and estate charges merit 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 guidance from a conveyancing solicitor 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 in-depth market knowledge 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.
Subsequent to unsuccessful correspondence with the freeholder of her first floor apartment in Swanscombe, Katie commenced the lease extension process just as the lease was nearing the critical eighty-year mark. The transaction completed in November 2005. The freeholder’s costs were restricted to slightly above 550 pounds.
Last June we were contacted by Dr Caitlin Campbell , who purchased a one bedroom flat in Swanscombe in January 2008. We are asked if we could approximate the price would be to extend the lease by ninety years. Identical flats in Swanscombe with a long lease were valued about £215,600. The average amount of ground rent was £45 collected annually. The lease terminated on 25 May 2087. Given that there were 62 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £18,100 and £20,800 exclusive of legals.
An example of a Lease Extension case for a Swanscombe property 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 unexpired term was 76 years.