The closer a domestic lease in Swadlincote nears to zero years unexpired, the more it reduces the value of the property. If the residual term has, over one hundred years to run then this decrease may be fractional that being said there will become a stage when a lease has under than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should consider extending without delay. Most flat owners in Swadlincote will meet the qualifying criteria; that being said a conveyancer should be able to confirm whether you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally considered that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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 be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Swadlincote,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Swadlincote valuers.
Freddie owned a high value apartment in Swadlincote on the market with a lease of just over 72 years unexpired. Freddie informally contacted his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 annually. Ordinarily, ground rent would not be due on a lease extension were Freddie to exercise his statutory right. Freddie procured expert advice and secured an acceptable deal informally and ending up with a market value flat.
In 2014 we were phoned by Dr Ibrahim Allen who, having moved into a first floor apartment in Swadlincote in April 2006. The dilemma was if we could approximate the price would be to prolong the lease by ninety years. Identical flats in Swadlincote with 100 year plus lease were worth £233,200. The mid-range amount of ground rent was £60 billed quarterly. The lease expired in 2087. Considering the 61 years left we calculated the premium to the landlord to extend the lease to be within £22,800 and £26,400 exclusive of expenses.
Mr and Mrs. I Bell took over the lease of a one bedroom flat in Swadlincote in April 2006. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by ninety years. Comparable residencies in Swadlincote with an extended lease were worth £171,800. The average amount of ground rent was £55 billed quarterly. The lease termination date was in 2076. Taking into account 50 years outstanding we calculated the compensation to the landlord for the lease extension to be between £33,300 and £38,400 plus costs.