Main reasons to commence your Swadlincote lease extension

Top reasons for lease extension now:

A Swadlincote leasehold property depreciates with the years remaining on the lease.

The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Swadlincote may extend the lease for a further ninety years under Leasehold Reform legislation. Please think carefully before delaying your Swadlincote lease extension. Shelving the costs today simply increases the amount you will eventually have to pay to extend the lease.

Swadlincote property with a lease extension has roughly the same value as a freehold

It is generally accepted that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for many years in the future.

Banks and Building Societies may decide not to issue a mortgage on a short lease

Many banks and building societies will be unwilling to lend on a lease with under seventy years remaining - although this varies between mortgage companies. A buyer will likely encounter difficulties in obtaining a mortgage and this will result in your Swadlincote property becoming difficult to dispose of or refinance.

Get in touch with one of our Swadlincote lease extension solicitors or enfranchisement solicitors

Using our service gives you increased control over the value of your Swadlincote leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Swadlincote Lease Extension Case Studies:

Hugo, Swadlincote, Derbyshire

Two years ago Hugo, came very close to the eighty-year threshold with the lease on his one bedroom apartment in Swadlincote. Having purchased his property twenty years previously, the unexpired term was of no relevance. As luck would have it, he became aware that he would soon be paying an escalated premium for a lease extension. Hugo arranged for a lease extension at the eleventh hour in May. Hugo and the landlord who owned the flat above in the end agreed on sum of £5,000 . If the lease had slipped below eighty years, the figure would have increased by a minimum £875.

Swadlincote case:

Last Winter we were contacted by Ms J Bernard , who was assigned a lease of a studio flat in Swadlincote in April 2011. The question was if we could shed any light on how much (approximately) price would be to prolong the lease by a further 90 years. Comparative properties in Swadlincote with 100 year plus lease were valued around £240,600. The mid-range amount of ground rent was £65 collected annually. The lease lapsed on 8 July 2088. Taking into account 62 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £21,900 and £25,200 not including fees.

Swadlincote case:

Last month we were phoned by Ms N Wright , who was assigned a lease of a first floor flat in Swadlincote in February 1995. The question was if we could estimate the premium would likely be for a 90 year extension to my lease. Identical flats in Swadlincote with 100 year plus lease were in the region of £179,200. The average ground rent payable was £55 invoiced every twelve months. The lease came to a finish on 8 May 2077. Given that there were 51 years left we approximated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 plus expenses.