Swadlincote leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now which permits qualifying Swadlincote residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Swadlincote you should investigate if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under eighty years, the cost of any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| Chelsea Building Society | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 get 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.
Luca owned a studio flat in Swadlincote on the market with a lease of just over 61 years outstanding. Luca informally spoke with his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £50 per annum. Ordinarily, ground rent would not be due on a lease extension were Luca to invoke his statutory right. Luca obtained expert legal guidance and secured satisfactory resolution without going to tribunal and readily saleable.
Mr and Mrs. K Young acquired a first floor apartment in Swadlincote in August 2002. The question was if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year extension to my lease. Comparative homes in Swadlincote with 100 year plus lease were worth £210,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease terminated on 27 September 2106. Considering the 80 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 plus costs.
Last Summer we were e-mailed by Mr Leon Martin , who purchased a purpose-built apartment in Swadlincote in June 2008. The question was if we could shed any light on how much (roughly) price would likely be to prolong the lease by ninety years. Comparative properties in Swadlincote with a long lease were worth £280,000. The mid-range ground rent payable was £45 invoiced quarterly. The lease end date was on 7 March 2095. Given that there were 69 years left we estimated the premium to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of legals.