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Top reasons for Swanscombe lease extension

Main reasons to start your Swanscombe lease extension today:

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

The only way is down when it comes to Swanscombe lease terms. Swanscombe properties that have a residual term fewer than eighty years will de-escalate in value even faster, and the cost to extend your lease will go up.

An extended lease has roughly the same value as a freehold

Leasehold properties in Swanscombe with in excess of one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.

Lending institutions may decide not to lend with a short lease

The trend since over the last decade has been for mortgage companies to tighten lending requirements generally - this has extended to the types of security over which the home loan is to be granted. This has resulted in the minimum number of years remaining under the lease required by lenders has increased. In the past lenders would lend on a lease with twenty years plus the term of the loan - routinely fifty year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

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.
Bank of Scotland Minimum 70 years from the date of the mortgage.
Barnsley Building Society 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.
National Westminster Bank Mortgage term plus 30 years.

For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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.

What makes us experts in Swanscombe lease extensions?

The lawyers that we work with procure Swanscombe 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 lawyer we work with provide it.

Swanscombe Lease Extension Example Cases:

William, Swanscombe, Kent

Last Christmas William, started to get close to the eighty-year threshold with the lease on his two bedroom apartment in Swanscombe. In buying his property twenty years previously, the length of the lease was of little bearing. by good luck, he became aware that he needed to take action soon on a lease extension. William extended the lease just ahead of time in May. William and the freeholder via the managing agents subsequently agreed on sum of £5,000 . If the lease had fallen lower than 80 years, the figure would have gone up by at least £925.

Swanscombe case:

Mr Zachary Moreau moved into a first floor apartment in Swanscombe in August 2004. The question was if we could approximate the price would be to prolong the lease by a further 90 years. Comparable residencies in Swanscombe with 100 year plus lease were valued about £250,000. The mid-range amount of ground rent was £50 collected annually. The lease termination date was on 4 August 2094. Given that there were 69 years left we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including legals.

Decision in Bexley

An example of a Lease Extension case for a Swanscombe premises is Various @ Colombus Square in January 2012. the Tribunal calculated the premiums to be paid for new leases for each of the flats in Mariners Walk to be £3822 and the premium to be paid for the new lease of 2 Knights Court to be £4439. This case was in relation to 13 flats. The remaining number of years on the lease was 76 years.