It’s a harsh certainty that a Swadlincote residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Swadlincote property market.Where your lease has approximately 90 years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than 80 years - otherwise a higher amount will be payable. Most leasehold owners in Swadlincote will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your lawyer for the duration of the process.
Leasehold premises in Swadlincote with more than 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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 in-depth market knowledge and the close ties they enjoy with Swadlincote valuers.
Last year Nathaniel, came seriously close to the 80-year mark with the lease on his garden flat in Swadlincote. Having purchased his flat 19 years previously, the lease term was of little interest. by good luck, he became aware that he would imminently be paying an inflated amount for a lease extension. Nathaniel extended the lease just under the wire last September. Nathaniel and the landlord who owned the flat above eventually agreed on sum of £6,000 . If the lease had fallen to less than eighty years, the sum would have escalated by at least £850.
In 2014 we were contacted by Ms Louise James who, having moved into a ground floor apartment in Swadlincote in May 2004. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Similar properties in Swadlincote with 100 year plus lease were worth £189,000. The average amount of ground rent was £55 invoiced annually. The lease ran out in 2079. Taking into account 53 years outstanding we calculated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 not including expenses.
Mr and Mrs. K Vincent purchased a first floor flat in Swadlincote in May 1996. We are asked if we could estimate the price could be to prolong the lease by 90 years. Identical homes in Swadlincote with 100 year plus lease were worth £290,000. The average ground rent payable was £45 invoiced quarterly. The lease elapsed on 27 September 2099. Taking into account 73 years left we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus expenses.