The closer a domestic lease in Swadlincote nears to zero years unexpired, the more it reduces the value of the property. If the lease has, more than 99 years to run then this decrease may be of little impact that being said there will become a stage when a lease has fewer than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should consider extending sooner than later. Most flat owners in Swadlincote will qualify for this right; that being said a conveyancer will be able to confirm if you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold properties in Swadlincote with more than 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Regardless of whether you are a tenant or a landlord in Swadlincote,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 Swadlincote valuers.
Ethan owned a studio apartment in Swadlincote being marketed with a lease of a little over fifty eight years unexpired. Ethan on an informal basis spoke with his landlord being a well known Manchester-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 yearly. No ground rent would be due on a lease extension were Ethan to invoke his statutory right. Ethan procured expert advice and secured satisfactory resolution informally and readily saleable.
In 2011 we were e-mailed by Mr Lucas Murphy who, having completed a one bedroom apartment in Swadlincote in September 1997. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by an additional years. Similar homes in Swadlincote with 100 year plus lease were worth £290,000. The mid-range amount of ground rent was £45 collected per annum. The lease ended in 2099. Given that there were 73 years remaining we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including legals.
Last year we were approach by Mr and Mrs. A Ali , who bought a basement flat in Swadlincote in April 2004. We are asked if we could estimate the premium would be to prolong the lease by 90 years. Identical residencies in Swadlincote with 100 year plus lease were worth £240,600. The mid-range amount of ground rent was £65 billed annually. The lease ended in 2088. Having 62 years remaining we calculated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 not including legals.