The nearer a residential lease in Swadlincote nears to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, in excess of one hundred years to run then this decrease may be of little impact nevertheless there will become a point in time when a lease has under than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease without delay. Most flat owners in Swadlincote will qualify for this right; that being said a conveyancer can advise whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold residencies in Swadlincote with more than 100 years unexpired on the lease are sometimes 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 to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Yorkshire 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. |
Using our service gives you enhanced control over the value of your Swadlincote leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Liam was the the leasehold owner of a conversion flat in Swadlincote being marketed with a lease of fraction over 72 years left. Liam on an informal basis contacted his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Liam to exercise his statutory right. Liam obtained expert legal guidance and secured satisfactory deal informally and ending up with a market value flat.
Last Christmas we were phoned by Ms L Rogers , who completed a purpose-built flat in Swadlincote in September 1995. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Similar residencies in Swadlincote with an extended lease were valued around £250,400. The mid-range ground rent payable was £65 invoiced every twelve months. The lease came to a finish on 28 June 2089. Given that there were 64 years remaining we approximated the premium to the landlord to extend the lease to be within £19,000 and £22,000 exclusive of legals.
Last Summer we were approach by Dr Jude Ali , who was assigned a lease of a garden apartment in Swadlincote in May 2005. The question was if we could estimate the premium could be to prolong the lease by a further 90 years. Comparative flats in Swadlincote with a long lease were worth £189,000. The average ground rent payable was £55 invoiced every twelve months. The lease expired on 12 January 2078. Given that there were 53 years outstanding we estimated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 not including costs.