The re-sale value of a leasehold property in Swadlincote is impacted by how long the lease has left to run. If it is close to or less than 80 years you should envisage problems on re-sale, so it is recommended to arrange for a lease extension prior to buying. Ideally one should start the lease extension process when a lease still has 82 years remaining so that a lease extension can be addressed in advance of the 80 year cut off point. Statute enables Swadlincote qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus a supplemental term of 90 years. The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a property with more than one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the property 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
Lease extensions in Swadlincote can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Swadlincote lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Isaac owned a studio apartment in Swadlincote being marketed with a lease of a little over 59 years outstanding. Isaac on an informal basis approached his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 per annum. No ground rent would be payable on a lease extension were Isaac to exercise his statutory right. Isaac obtained expert legal guidance and secured satisfactory deal without going to tribunal and sell the property.
In 2010 we were e-mailed by Mr and Mrs. M Khan who, having acquired a newly refurbished apartment in Swadlincote in June 2005. The question was if we could estimate the premium would be to prolong the lease by a further 90 years. Identical premises in Swadlincote with an extended lease were worth £200,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease ended in 2103. Given that there were 77 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 not including costs.
Last Christmas we were approach by Mr and Mrs. T Rodríguez , who took over the lease of a one bedroom apartment in Swadlincote in September 2009. We are asked if we could estimate the price could be to extend the lease by 90 years. Identical flats in Swadlincote with an extended lease were valued about £265,200. The average amount of ground rent was £65 billed quarterly. The lease end date was on 6 April 2092. Considering the 66 years unexpired we estimated the compensation to the landlord to extend the lease to be between £15,200 and £17,600 exclusive of costs.