Swiss Cottage leases on domestic deteriorating in value. Where your lease has in the region of ninety years left, you should start thinking about a lease extension. If lease term dips under eighty years, you will then have to pay half of the property's 'marriage value' on top of 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. Flat owners in Swiss Cottage will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to check if you qualify. In some circumstances you may not qualify. There are prescribed deadlines and formalities to follow once the process has started so it’s sensible to be guided by a lawyer during the process.
It is conventional wisdom that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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; |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Swiss Cottage,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Swiss Cottage valuers.
In recent months Lewis, started to get near to the eighty-year mark with the lease on his purpose- built flat in Swiss Cottage. In buying his home two decades ago, the length of the lease was of no concern. by good luck, he recognised he needed to take action soon on a lease extension. Lewis arranged for a lease extension just under the wire last January. Lewis and the landlord who owned the flat above in the end agreed on sum of £5,000 . If he not met the deadline, the price would have gone up by at least £850.
In 2013 we were called by Mr and Mrs. S Edwards who, having took over the lease of a ground floor flat in Swiss Cottage in July 2007. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Comparable flats in Swiss Cottage with 100 year plus lease were valued about £193,400. The average ground rent payable was £65 billed yearly. The lease elapsed in 2084. Considering the 59 years unexpired we calculated the premium to the landlord for the lease extension to be between £21,900 and £25,200 exclusive of professional charges.
An example of a Lease Extension case for a Swiss Cottage residence is First Floor Flat 20 Fitzjohns Avenue in July 2014. the Tribunal decided that the premiums to be paid for new leases in respect of the Raised Ground Floor Flat and the First Floor Flat were to be calculated as: Raised Ground Floor: £765,175.14 First Floor: £601,617.77 This case related to 2 flats. The unexpired term as at the valuation date was 16.83 and 16.43.