For those whose Swadlincote property is held on a long lease, the message is clear – if you ignore the situation, your property will ultimately revert to your landlord, leaving you empty-handed. The shorter the lease the lower the value of the property and the more it will cost to procure a lease extension.
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the residence will be worth the same as 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Swadlincote,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Swadlincote valuers.
William owned a 2 bedroom apartment in Swadlincote on the market with a lease of a little over fifty eight years outstanding. William informally contacted his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were William to invoke his statutory right. William procured expert legal guidance and secured satisfactory deal without going to tribunal and ending up with a market value flat.
Last month we were contacted by Ms Naomi Vincent , who purchased a garden apartment in Swadlincote in January 1998. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Identical homes in Swadlincote with an extended lease were valued around £285,000. The mid-range ground rent payable was £45 collected every twelve months. The lease elapsed in 2096. Having 71 years unexpired we calculated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of expenses.
Last Autumn we were contacted by Ms A Gunderson , who was assigned a lease of a purpose-built flat in Swadlincote in February 2009. We are asked if we could estimate the price would be for a 90 year extension to my lease. Comparative homes in Swadlincote with a long lease were in the region of £230,800. The average amount of ground rent was £60 collected per annum. The lease end date was in 2085. Considering the 60 years remaining we estimated the compensation to the landlord to extend the lease to be between £24,700 and £28,600 exclusive of costs.