Chances are that where you own a flat in Swadlincote you actually own a long leasehold interest over your property
It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Mortgage term plus 25 years provided that leases of less than 85 years are be referred to us for approval. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Mortgage term plus 30 years subject to an overall minimum term of 70 years |
Irrespective of whether you are a tenant or a landlord in Swadlincote,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Swadlincote valuers.
Jason owned a studio flat in Swadlincote on the market with a lease of a few days over 59 years left. Jason on an informal basis contacted his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Jason to exercise his statutory right. Jason procured expert legal guidance and secured satisfactory deal without resorting to tribunal and ending up with a market value flat.
Ms A Taylor took over the lease of a purpose-built flat in Swadlincote in May 1999. We are asked if we could approximate the price would be for a ninety year lease extension. Comparable premises in Swadlincote with a long lease were valued around £257,800. The average ground rent payable was £65 collected monthly. The lease expired in 2086. Having 65 years outstanding we calculated the premium to the freeholder for the lease extension to be within £18,100 and £20,800 not including legals.
Last Autumn we were approach by Mr and Mrs. D Carter , who completed a ground floor apartment in Swadlincote in April 2000. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by a further 90 years. Similar premises in Swadlincote with 100 year plus lease were in the region of £191,400. The average ground rent payable was £55 billed yearly. The lease finished in 2075. Taking into account 54 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £34,200 and £39,600 plus costs.