Top reasons for Sandbanks lease extension

Why you should commence your Sandbanks lease extension today:

Increase your lease and increase your Sandbanks property value

With a domestic leasehold premises in Sandbanks, you are actually purchasing an entitlement to reside in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive especially once there are fewer than 80 years remaining. Residents in Sandbanks with a lease nearing 81 years remaining should seriously think of extending it sooner as opposed to later. Once a lease has less than 80 years outstanding, under the current legislation the landlord is entitled to calculate and demand a larger amount, assessed on a technical calculation, known as “marriage value” which is due.

Sandbanks property with a lease extension has roughly the same value as a freehold

Leasehold residencies in Sandbanks with over 100 years left on the lease are sometimes regarded as a ‘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 purchasing the freehold unless savings on ground rent and estate charges warrant it.

Lenders may not issue a mortgage with a short lease

Whether or not the lease is be regarded as a short lease varies by mortgage company, yet banks and building societies start to get concerned at around 75 years. This may cause difficulties when you wish to sell or remortgage your property as it will be effectively unmortgageable. Even though you might have no imminent plan to sell but when you do your buyer will have to wait 2 years before being able to exercise the right to a a lease extension.

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

Engaging our service will provide you better control over the value of your Sandbanks leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Sandbanks Lease Extension Example Cases:

Kai, Sandbanks, Dorset

Last Spring Kai, came dangerously near to the eighty-year threshold with the lease on his two bedroom apartment in Sandbanks. Having bought his property two decades ago, the lease term was of minimal concern. Luckily, he became aware that he needed to take action soon on a lease extension. Kai arranged for a lease extension just in the nick of time in July. Kai and the landlord in the end agreed on an amount of £5,500 . If he had missed the deadline, the sum would have increased by at least £1,100.

Sandbanks case:

Ms B Peterson owned a one bedroom apartment in Sandbanks in June 2005. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Comparable flats in Sandbanks with a long lease were valued about £246,800. The average amount of ground rent was £60 invoiced monthly. The lease expired on 27 January 2076. Considering the 50 years left we approximated the premium to the freeholder to extend the lease to be within £44,700 and £51,600 not including costs.

Sandbanks case:

In 2013 we were approached by Ms R López who, having bought a one bedroom flat in Sandbanks in September 2003. We are asked if we could approximate the premium could be for a 90 year lease extension. Identical residencies in Sandbanks with an extended lease were in the region of £208,200. The average ground rent payable was £65 invoiced yearly. The lease lapsed on 11 July 2087. Having 61 years unexpired we calculated the premium to the landlord to extend the lease to be within £20,000 and £23,000 not including costs.