Swiss Cottage leases on residential properties are gradually losing value. Where your lease has approximately 90 years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to take place before the term of the existing lease falls lower than eighty years - otherwise a higher premium will be due. Flat owners in Swiss Cottage will mostly qualify for a lease extension; however it’s a good idea to check with a lawyer to confirm if you qualify. In certain cases you may not be entitled. There are also strict deadlines and steps to comply with once the process has started so it’s wise to be guided by a lawyer during the process.
It is generally accepted that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Engaging our service gives you better control over the value of your Swiss Cottage leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
After unsuccessful correspondence with the freeholder of her studio flat in Swiss Cottage, Victoria commenced the lease extension process just as the lease was approaching the critical eighty-year deadline. The transaction was finalised in July 2013. The freeholder’s charges were negotiated to less than 700 GBP.
Mr J Gunderson acquired a basement apartment in Swiss Cottage in January 1997. We are asked if we could estimate the price would be for a 90 year extension to my lease. Comparative flats in Swiss Cottage with an extended lease were in the region of £280,000. The mid-range ground rent payable was £55 billed annually. The lease elapsed on 6 July 2104. Given that there were 78 years remaining we approximated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 plus expenses.
An example of a Lease Extension decision for a Swiss Cottage flat 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 was in relation to 2 flats. The unexpired term was 16.83 and 16.43.