The market value of a leasehold property in Swadlincote depends on how many years the lease has remaining. If it is close to or fewer than 80 years you should envisage difficulties on re-sale, so it is advisable to arrange for a lease extension ahead of buying. It is preferable to start the lease extension process when the lease still has 82 years unexpired so that all matters can be addressed prior to the 80 year mark. Statute entitles Swadlincote qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus a supplemental term of ninety years. The reason of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a property with over one hundred 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 remaining, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Birmingham Midshires | |
| Godiva Mortgages | |
| Halifax | |
| Yorkshire Building Society |
Lease extensions in Swadlincote can be a difficult process. We recommend you obtain guidance from a lawyer and surveyor with experience in this area.
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 in-depth market knowledge 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.
Jamie was the the leasehold owner of a studio apartment in Swadlincote on the market with a lease of fraction over 72 years outstanding. Jamie on an informal basis contacted his landlord a well known local-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Jamie to exercise his statutory right. Jamie procured expert advice and secured an acceptable resolution without resorting to tribunal and sell the property.
In 2011 we were approached by Mr Aarav Garcia who, having acquired a first floor apartment in Swadlincote in September 2000. The dilemma was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Identical homes in Swadlincote with a long lease were in the region of £205,000. The average amount of ground rent was £50 invoiced yearly. The lease expired on 19 August 2104. Having 78 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £7,600 and £8,800 not including costs.
In 2012 we were approached by Mr and Mrs. A Campbell who, having completed a ground floor flat in Swadlincote in October 1998. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Identical residencies in Swadlincote with an extended lease were in the region of £267,600. The average amount of ground rent was £65 collected monthly. The lease elapsed in 2093. Taking into account 67 years left we approximated the premium to the landlord to extend the lease to be within £14,300 and £16,400 plus legals.