Why you should start your Swanage lease extension

Main reasons to commence your Swanage lease extension today:

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

Swanage leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Swanage residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Swanage you must investigate if your lease has between 70 and 90 years left. There are good reasons why a Swanage leaseholder with a lease having around eighty years left should take steps to ensure that a lease extension is effected without delay

Swanage property with a lease extension is almost the same value as a freehold

Leasehold premises in Swanage with more than one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.

Lenders will not loan monies on a short lease

Mortgage lenders have specific criteria when loaning monies charged on leasehold homes. Some will simply refrain from lending at all once an unexpired lease term slips beneath a certain unexpired lease term. Many Mortgage lenders will not regard property with an unexpired below 75 years suitable security. In addition to impacting your ability to sell, it is also relevant if you are wanting to refinance your Swanage home.

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

The lawyers that we work with procure Swanage 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.

Swanage Lease Extension Case Studies:

Gemma, Swanage, Dorset,

Trailing protracted correspondence with the landlord of her one bedroom flat in Swanage, Gemma commenced the lease extension process just as the lease was approaching the all-important eighty-year mark. The legal work completed in March 2008. The landlord’s fees were negotiated to slightly above 700 GBP.

Swanage case:

In 2014 we were contacted by Mr and Mrs. I Taylor who, having bought a studio apartment in Swanage in November 2005. The dilemma was if we could estimate the price would likely be to extend the lease by a further 90 years. Comparative residencies in Swanage with an extended lease were valued about £254,200. The average ground rent payable was £60 invoiced monthly. The lease elapsed in 2077. Considering the 51 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £43,700 and £50,600 not including expenses.

Swanage case:

Dr Jayden Williams took over the lease of a garden flat in Swanage in August 2000. We are asked if we could estimate the premium would be for a ninety year lease extension. Comparable residencies in Swanage with 100 year plus lease were worth £210,600. The average amount of ground rent was £45 billed annually. The lease expired on 15 October 2088. Having 62 years unexpired we calculated the premium to the landlord to extend the lease to be between £18,100 and £20,800 plus costs.