With a residential leasehold property in Swadlincote, you are actually buying an entitlement to reside in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are less than 80 years left. Anyone in Swadlincote with a lease drawing near to 81 years remaining should seriously think of extending it sooner as opposed to later. Once a lease has below eighty years outstanding, under the relevant Act the freeholder is entitled to calculate and charge a larger amount, assessed on a technical computation, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 guidance from a conveyancing solicitor and valuer 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 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 high value flat in Swadlincote on the market with a lease of a little over 59 years outstanding. Luca on an informal basis contacted his freeholder being a well known London-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 per annum. No ground rent would be payable on a lease extension were Luca to invoke his statutory right. Luca obtained expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.
In 2012 we were contacted by Mr O Dupont who, having owned a one bedroom apartment in Swadlincote in November 1996. The dilemma was if we could approximate the premium could be for a ninety year lease extension. Identical residencies in Swadlincote with an extended lease were in the region of £206,200. The average ground rent payable was £60 collected monthly. The lease lapsed on 28 February 2081. Considering the 56 years remaining we approximated the compensation to the freeholder for the lease extension to be between £32,300 and £37,400 not including fees.
Last month we were contacted by Mr and Mrs. S Hernández , who moved into a garden flat in Swadlincote in October 2012. The question was if we could approximate the premium could be for a 90 year lease extension. Similar properties in Swadlincote with a long lease were worth £300,000. The average ground rent payable was £50 invoiced monthly. The lease ended on 16 November 2101. Having 76 years as a residual term we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of professional charges.