Swadlincote leases on domestic properties are gradually losing value. if your lease has about 90 years remaining, you should start thinking about a lease extension. An important point to note is that it is financially advisable for the lease extension to be in place before the term of the current lease drops under 80 years - otherwise a higher amount will be due. Leasehold owners in Swadlincote will mostly qualify for a lease extension; however It would be wise to check with a lawyer to check your eligibility. In some situations you may not qualify. There are prescribed timetables and procedures to comply with once the process is initiated so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold premises in Swadlincote with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
The lawyers that we work with procure 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 conveyancer we work with provide it.
16 months ago Adam, came critically near to the 80-year mark with the lease on his basement apartment in Swadlincote. In buying his home two decades ago, the lease term was of minimal significance. As luck would have it, he recognised he needed to take action soon on Extending the lease. Adam was able to extend his lease at the eleventh hour last April. Adam and the landlord who owned the flat above eventually settled on sum of £5,000 . If he failed to meet the deadline, the sum would have escalated by at least £950.
Mrs Leah Cox took over the lease of a purpose-built flat in Swadlincote in July 2005. We are asked if we could approximate the premium would likely be for a 90 year extension to my lease. Comparative premises in Swadlincote with a long lease were worth £196,400. The average ground rent payable was £55 billed yearly. The lease elapsed in 2080. Given that there were 54 years remaining we approximated the compensation to the landlord to extend the lease to be between £35,200 and £40,600 exclusive of legals.
Last May we were approach by Mr and Mrs. B Morris , who completed a basement flat in Swadlincote in July 2002. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by a further 90 years. Identical residencies in Swadlincote with 100 year plus lease were worth £295,000. The mid-range amount of ground rent was £45 billed per annum. The lease came to a finish in 2100. Given that there were 74 years as a residual term we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including costs.