Main reasons to commence your Swadlincote lease extension

Main reasons to commence your Swadlincote lease extension today:

A Swadlincote leasehold property depreciates with the years remaining on the lease.

For those whose Swadlincote property is held on a long lease, the message is clear – if nothing is done, your property will eventually revert to the freeholder, leaving you empty-handed. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease.

Swadlincote property with a lease extension has roughly the same value as a freehold

Leasehold properties in Swadlincote with over 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.

Lenders may not lend on a short lease

Many banks and building societies will not grant a mortgage on a lease with under 70 years remaining - although this varies from lender to lender. A purchaser will no doubt find it difficult in obtaining a mortgage and this will result in your Swadlincote property becoming difficult to sell or refinance.

Get in touch with one of our Swadlincote lease extension solicitors or enfranchisement solicitors

Irrespective of whether you are a tenant or a freeholder in Swadlincote,the lease extension experts that we work with will always be prepared 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.

Swadlincote Lease Extension Case Studies:

Harriet, Swadlincote, Derbyshire,

Trailing unsuccessful negotiations with the freeholder of her garden flat in Swadlincote, Harriet initiated the lease extension process as the 80 year threshold was fast advancing. The lease extension was concluded in June 2009. The landlord’s costs were negotiated to about 600 pounds.

Swadlincote case:

Mr and Mrs. U Patel bought a studio flat in Swadlincote in February 2008. The dilemma was if we could estimate the price would likely be for a ninety year lease extension. Similar premises in Swadlincote with a long lease were worth £216,000. The average ground rent payable was £60 billed annually. The lease ran out on 19 February 2084. Taking into account 58 years left we approximated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 plus professional charges.

Swadlincote case:

Last Autumn we were approach by Dr John Clarke , who was assigned a lease of a garden flat in Swadlincote in October 2007. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Comparable flats in Swadlincote with a long lease were valued about £205,000. The average ground rent payable was £50 billed yearly. The lease finished in 2104. Having 78 years left we estimated the premium to the freeholder to extend the lease to be within £7,600 and £8,800 plus legals.