The closer a domestic lease in Swadlincote nears to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, over 99 years to run then this decrease may be of little impact nevertheless there will become a point in time when a lease has fewer than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main logic behind why you should consider extending without delay. Most flat owners in Swadlincote will qualify for this right; nevertheless a conveyancing solicitor can confirm if you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold residencies in Swadlincote with over 100 years left on the lease are sometimes regarded as a ‘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 to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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 should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
Using our service will provide you increased control over the value of your Swadlincote leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Edward owned a 2 bedroom apartment in Swadlincote being sold with a lease of fraction over 61 years left. Edward on an informal basis approached his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Edward to invoke his statutory right. Edward obtained expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.
Mr B Sharif moved into a studio apartment in Swadlincote in March 2000. The dilemma was if we could approximate the premium could be for a ninety year lease extension. Comparative homes in Swadlincote with a long lease were valued around £290,000. The mid-range amount of ground rent was £45 collected quarterly. The lease expiry date was in 2098. Having 72 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £11,400 and £13,200 not including professional charges.
In 2012 we were called by Mr T Bernard who, having acquired a purpose-built flat in Swadlincote in February 1998. We are asked if we could approximate the premium would likely be to prolong the lease by ninety years. Identical homes in Swadlincote with 100 year plus lease were valued about £233,200. The average ground rent payable was £60 collected monthly. The lease came to a finish in 2087. Having 61 years outstanding we estimated the premium to the landlord for the lease extension to be within £22,800 and £26,400 exclusive of expenses.