Owning a apartment usually means owning a lease of the property, which has a set term of years. The lease will ordinarily be granted for a set period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Swadlincote. Clearly, the term of lease left shortens as time goes by. This is often ignored and only becomes a problem when the property has to be sold or refinanced. The shorter the lease the less it is worth and the more expensive it will be to procure a lease extension. Eligible long lease owners in Swadlincote have the right to extend the lease for a further ninety years under statute. Please give due consideration before delaying your Swadlincote lease extension. Holding off the cost now simply increases the price you will ultimately incur for a lease extension
Leasehold premises 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 home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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; |
| 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 get professional help from a conveyancing solicitor and surveyor with experience in lease extensions.
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.
George was the the leasehold proprietor of a 2 bedroom apartment in Swadlincote on the market with a lease of a few days over fifty eight years remaining. George informally contacted his landlord a well known Bristol-based freehold company for a lease extension. The landlord was prepared to give 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 doubled every twenty five years thereafter. No ground rent would be due on a lease extension were George to exercise his statutory right. George procured expert legal guidance and secured an acceptable resolution informally and sell the flat.
Mr and Mrs. A Moore owned a basement flat in Swadlincote in February 2006. The question was if we could shed any light on how much (roughly) premium could be to extend the lease by an additional years. Identical properties in Swadlincote with 100 year plus lease were valued about £174,200. The mid-range ground rent payable was £55 billed yearly. The lease elapsed in 2076. Considering the 51 years unexpired we approximated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 not including costs.
Dr A Robinson bought a first floor flat in Swadlincote in May 2000. The question was if we could approximate the premium would likely be to extend the lease by an additional years. Comparative flats in Swadlincote with a long lease were valued around £285,000. The mid-range ground rent payable was £45 invoiced per annum. The lease terminated on 24 February 2096. Having 71 years unexpired we estimated the premium to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of costs.