Main reasons to start your Swinton lease extension

Top reasons for lease extension now:

Increase your lease and increase your Swinton property value

Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will ordinarily be granted for a prescribed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Swinton. Clearly, the length of lease remaining reduces as time goes by. This is often ignored and only raises itself as an issue when the residence needs to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Eligible long lease owners in Swinton have the right to extend the lease for an additional ninety years under legislation. Do give due attention before putting off your Swinton lease extension. Putting off the cost now likely increases the price you will ultimately have to pay for a lease extension

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

It is generally considered that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the property will be worth the same as a freehold for many years ahead.

Banks and Building Societies will not lend on a short lease

The trend since 2008 has been for lenders to tighten lending requirements generally - this has extended to the property over which the home loan is to be charged. This has meant the minimum number of years remaining under the lease required by lenders has increased. In the past lenders were content with twenty years plus the term of the loan - typically 50 year leases but those requirements evolved by the requirement for longer and longer leases - many use a minimum term of 75 years as standard.

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

Lease extensions in Swinton can be a difficult process. We recommend you procure guidance from a lawyer and valuer with experience in this area.

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 Swinton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Swinton Lease Extension Case Summaries:

Jamie, Swinton, Greater Manchester,

Jamie was the the leasehold owner of a studio flat in Swinton being marketed with a lease of a few days over 59 years remaining. Jamie informally approached his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Jamie to exercise his statutory right. Jamie procured expert advice and secured satisfactory resolution without resorting to tribunal and ending up with a market value flat.

Swinton case:

Last year we were called by Dr F Ricardo , who took over the lease of a first floor apartment in Swinton in May 2004. The dilemma was if we could estimate the premium would likely be for a 90 year lease extension. Comparative residencies in Swinton with 100 year plus lease were worth £243,000. The mid-range ground rent payable was £65 collected annually. The lease concluded on 18 March 2089. Having 63 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £20,000 and £23,000 exclusive of fees.

Swinton case:

Dr Stanley Ricardo completed a one bedroom apartment in Swinton in October 1999. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar premises in Swinton with 100 year plus lease were in the region of £181,600. The mid-range amount of ground rent was £55 billed per annum. The lease ended on 25 March 2078. Given that there were 52 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £30,400 and £35,200 plus costs.