Chances are that if you own a flat in Swadlincote you actually own a long leasehold interest over your property
Leasehold premises in Swadlincote with more than 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with handle Swadlincote lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Last October Tommy, came dangerously close to the eighty-year mark with the lease on his one bedroom apartment in Swadlincote. In buying his home 18 years ago, the lease term was of minimal significance. As luck would have it, he noticed he would soon be paying way over the odds for Extending the lease. Tommy was able to extend his lease at the eleventh hour in September. Tommy and the landlord who owned the flat above ultimately settled on an amount of £5,500 . If he failed to meet the deadline, the premium would have gone up by at least £950.
In 2011 we were called by Dr R Mercier who, having moved into a one bedroom apartment in Swadlincote in October 2006. We are asked if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Comparable homes in Swadlincote with an extended lease were in the region of £248,000. The mid-range ground rent payable was £65 invoiced quarterly. The lease finished in 2088. Having 63 years outstanding we approximated the premium to the landlord to extend the lease to be within £20,900 and £24,200 not including fees.
In 2011 we were called by Mrs Madeleine Lefèvre who, having moved into a studio flat in Swadlincote in June 1998. The question was if we could estimate the price could be to prolong the lease by a further 90 years. Identical premises in Swadlincote with a long lease were worth £181,600. The average amount of ground rent was £55 invoiced per annum. The lease ran out on 6 May 2077. Taking into account 52 years unexpired we estimated the premium to the freeholder to extend the lease to be between £30,400 and £35,200 plus expenses.