The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Swadlincote have the right to extend the lease for an additional 90 years under legislation. Please think carefully before delaying your Swadlincote lease extension. Shelving the costs today simply increases the premium you will ultimately be required to pay to extend the lease.
Leasehold residencies in Swadlincote with in excess of one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Birmingham Midshires | 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
Using our service gives you enhanced control over the value of your Swadlincote leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last Summer Alex, came critically near to the 80-year mark with the lease on his purpose- built flat in Swadlincote. Having purchased his flat 18 years ago, the lease term was of no bearing. As luck would have it, he recognised he needed to take action soon on Extending the lease. Alex was able to extend his lease at the eleventh hour in May. Alex and the landlord who owned the flat above in the end settled on a premium of £5,000 . If the lease had dipped below 80 years, the figure would have gone up by a minimum £1,150.
Ms Abbie Fournier took over the lease of a first floor flat in Swadlincote in August 1997. The question was if we could estimate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparative properties in Swadlincote with a long lease were valued around £248,000. The mid-range ground rent payable was £65 collected per annum. The lease finished in 2089. Having 63 years remaining we calculated the premium to the freeholder to extend the lease to be between £20,900 and £24,200 exclusive of legals.
Last November we were e-mailed by Ms G White , who acquired a one bedroom flat in Swadlincote in September 2001. The dilemma was if we could approximate the premium would likely be for a 90 year extension to my lease. Comparable premises in Swadlincote with a long lease were worth £181,600. The average amount of ground rent was £55 billed per annum. The lease concluded on 5 August 2078. Having 52 years left we calculated the premium to the landlord for the lease extension to be within £30,400 and £35,200 not including professional charges.