Swadlincote leases on residential deteriorating in value. if your lease has approximately ninety years unexpired, you should start thinking about a lease extension. If lease term is under eighty years, you will then have to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Swadlincote will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to check your eligibility. In certain circumstances you may not be entitled. There are also strict timetables and formalities to follow once the process is initiated so it’s best to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Lease extensions in Swadlincote can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and valuer 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 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.
Twenty four months ago Noah, came precariously near to the eighty-year mark with the lease on his purpose- built flat in Swadlincote. Having bought his flat 18 years previously, the lease term was of little concern. As luck would have it, he noticed he would soon be paying an inflated amount for a lease extension. Noah was able to extend his lease at the eleventh hour last September. Noah and the freeholder via the management company subsequently settled on an amount of £5,500 . If the lease had fallen lower than eighty years, the figure would have increased by at least £1,100.
In 2012 we were phoned by Mr and Mrs. H André who, having purchased a basement apartment in Swadlincote in April 2004. The question was if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Identical flats in Swadlincote with 100 year plus lease were worth £257,800. The mid-range amount of ground rent was £65 billed annually. The lease elapsed on 10 May 2091. Given that there were 65 years remaining we approximated the premium to the freeholder for the lease extension to be between £18,100 and £20,800 exclusive of professional charges.
Mr and Mrs. U François purchased a garden apartment in Swadlincote in January 2011. We are asked if we could approximate the premium would likely be for a 90 year extension to my lease. Identical properties in Swadlincote with an extended lease were valued about £196,400. The mid-range amount of ground rent was £55 invoiced yearly. The lease expired in 2080. Having 54 years unexpired we calculated the premium to the landlord for the lease extension to be between £34,200 and £39,600 not including fees.