The market value of a leasehold property in Swadlincote is impacted by how many years the lease has remaining. If it is near to or less than eighty years you should expect difficulties on re-sale, so it is advisable to arrange for the lease to be extended before buying. It is preferable to commence the process of extending the lease is when the lease still has 82 years to run so that formalities can be finalised well before the eighty year cut off point. Leasehold Reform legislation enables Swadlincote qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus a further term of ninety years. The purpose of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Swadlincote can be a difficult process. We recommend you secure guidance from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Swadlincote lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Joshua was the the leasehold owner of a high value flat in Swadlincote on the market with a lease of fraction over fifty eight years remaining. Joshua on an informal basis spoke with his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Joshua to exercise his statutory right. Joshua obtained expert advice and was able to make an informed judgement and handle with the matter and readily saleable.
Last Autumn we were contacted by Ms M Edwards , who owned a basement flat in Swadlincote in March 1999. The question was if we could approximate the premium would be for a ninety year lease extension. Comparative premises in Swadlincote with a long lease were worth £257,800. The mid-range amount of ground rent was £65 billed monthly. The lease elapsed on 4 February 2089. Given that there were 65 years unexpired we estimated the premium to the freeholder for the lease extension to be between £18,100 and £20,800 not including professional charges.
In 2012 we were approached by Mr and Mrs. E Cooper who, having took over the lease of a ground floor flat in Swadlincote in June 2009. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Similar homes in Swadlincote with a long lease were in the region of £191,400. The average ground rent payable was £55 invoiced every twelve months. The lease finished in 2078. Considering the 54 years remaining we estimated the premium to the landlord to extend the lease to be between £34,200 and £39,600 exclusive of professional charges.