There is no doubt about it a leasehold property in Swiss Cottage is a wasting asset as a result of the shortening lease. Where the lease has, over one hundred years to run then this decrease may be negligible however there will become a point in time when a lease has fewer than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease without delay. The majority of flat owners in Swiss Cottage will qualify for this right; nevertheless a conveyancing solicitor can advise whether you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
Regardless of whether you are a tenant or a landlord in Swiss Cottage,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Swiss Cottage valuers.
During the course of the last few months Andrew, came critically close to the 80-year mark with the lease on his two bedroom flat in Swiss Cottage. In buying his flat twenty years previously, the length of the lease was of little significance. by good luck, he realised he would soon be paying way over the odds for a lease extension. Andrew was able to extend his lease just under the wire in September. Andrew and the freeholder eventually agreed on an amount of £5,000 . If the lease had dipped lower than 80 years, the amount would have become more costly by at least £1,100.
Last Spring we were contacted by Mr L Sánchez , who owned a recently refurbished flat in Swiss Cottage in April 1997. We are asked if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Comparable properties in Swiss Cottage with an extended lease were worth £256,600. The average amount of ground rent was £60 billed quarterly. The lease ran out on 10 March 2077. Taking into account 52 years left we approximated the compensation to the freeholder for the lease extension to be between £41,800 and £48,400 plus costs.
An example of a Lease Extension case for a Swiss Cottage premises 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 number of years remaining on the existing lease(s) was 16.83 and 16.43.