Main reasons to start your Swinton lease extension

Main reasons to commence your Swinton lease extension today:

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

Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Swinton. Inevitably, the period of lease left shortens over time. This may slip by relatively unnoticed when the property has to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Qualifying leaseholders in Swinton have the legal entitlement to extend the lease for a further ninety years under legislation. Do give due deliberation before delaying your Swinton lease extension. Putting off the cost now likely increases the price you will eventually incur to extend your lease

An extended lease is almost the same value as a freehold

Leasehold properties in Swinton with more than 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.

Banks and Building Societies may not loan monies with a short lease

The trend since 2008 has been for banks to tighten lending requirements generally - this has extended to the property over which the mortgage is to be charged. This has resulted in the minimum number of years remaining under the lease required by lenders has increased. In the past lenders were content with 25 years plus the term of the loan - typically 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 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 get professional help 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 dealing with 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 Example Cases:

Michael, Swinton, Greater Manchester

Last year Michael, started to get close to the eighty-year mark with the lease on his purpose- built flat in Swinton. In buying his property 18 years ago, the length of the lease was of little relevance. Fortunately, he became aware that he would soon be paying an escalated premium for a lease extension. Michael arranged for a lease extension just under the wire last January. Michael and the landlord ultimately settled on an amount of £6,000 . If he failed to meet the deadline, the amount would have increased by a minimum £975.

Swinton case:

Dr I Wilson bought a one bedroom flat in Swinton in September 2004. We are asked if we could estimate the premium would be to prolong the lease by an additional years. Comparable homes in Swinton with an extended lease were in the region of £267,600. The mid-range amount of ground rent was £65 billed annually. The lease expired on 19 May 2093. Taking into account 67 years remaining we estimated the premium to the landlord to extend the lease to be between £14,300 and £16,400 plus fees.

Swinton case:

In 2011 we were approached by Mr and Mrs. M Miller who, having took over the lease of a one bedroom apartment in Swinton in July 2004. We are asked if we could shed any light on how much (approximately) price would be to prolong the lease by 90 years. Identical homes in Swinton with an extended lease were worth £206,200. The average ground rent payable was £55 invoiced annually. The lease expired on 12 October 2082. Taking into account 56 years outstanding we approximated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 exclusive of costs.