Why you should start your Swanscombe lease extension

Why you should commence your Swanscombe lease extension today:

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

With a residential leasehold premises in Swanscombe, you effectively rent it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive particularly when there are less than eighty years remaining. Anyone in Swanscombe with a lease nearing 81 years unexpired should seriously think of extending it as soon as possible. Once the lease term has below eighty years outstanding, under the relevant statute the freeholder is entitled to calculate and charge a greater amount, based on a technical multiplication, strangely termed as “marriage value” which is payable.

An extended lease has roughly the same value as a freehold

It is generally considered that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.

Mortgage lenders may decide not to finance a property with a short lease

Lenders are really restricting their approach as regards to properties in Swanscombe with short leases. For instance you may find that their lending criteria are stricter and that they alter interest rates depending on how many years are left on the lease. Some may even refuse to lend completely, so where you wanted to sell, your only options would be to find a cash purchaser, or try your luck at auction thus narrowing your market.

Why use us for your lease extension in Swanscombe?

Regardless of whether you are a tenant or a landlord in Swanscombe,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Swanscombe valuers.

Swanscombe Lease Extension Case Summaries:

Lydia, Swanscombe, Kent,

Following unsuccessful negotiations with the freeholder of her ground floor apartment in Swanscombe, Lydia commenced the lease extension process as the eighty year mark was swiftly coming. The transaction was concluded in November 2010. The landlord’s fees were kept to an absolute minimum.

Swanscombe case:

Last Christmas we were contacted by Mr and Mrs. H Wilson , who was assigned a lease of a basement flat in Swanscombe in May 2005. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Similar flats in Swanscombe with a long lease were valued around £193,400. The average amount of ground rent was £65 invoiced yearly. The lease ended in 2085. Taking into account 59 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 exclusive of fees.