Why you should commence your Sandbanks lease extension

Main reasons to start your Sandbanks lease extension today:

Increase your lease and increase your Sandbanks property value

Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will normally be granted for a set period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Sandbanks. Inevitably, the length of lease left shortens over time. This may pass by relatively unnoticed when the flat or house has to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Qualifying long lease owners in Sandbanks have the right to extend the lease for an additional ninety years under the 1993 Leasehold Reform Act. Do give careful consideration before putting off your Sandbanks lease extension. Holding off that expense now likely increases the price you will ultimately have to pay to extend your lease

An extended lease is almost the same value as a freehold

It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.

Lending institutions may not grant a mortgage on a short lease

Nearly all mortgage companies will not lend on a lease with less than 70 years remaining - although this varies from lender to lender. A purchaser will likely find it difficult in obtaining a mortgage and this could result in your Sandbanks property being difficult to sell or remortgage.

What makes us experts in Sandbanks lease extensions?

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

Sandbanks Lease Extension Case Summaries:

Aiden, Sandbanks, Dorset,

Aiden was the the leasehold owner of a studio apartment in Sandbanks being sold with a lease of a little over 59 years remaining. Aiden informally approached his freeholder being a well known local-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Aiden to invoke his statutory right. Aiden obtained expert advice and secured an acceptable deal informally and readily saleable.

Sandbanks case:

In 2014 we were e-mailed by Ms N Bonnet who, having bought a purpose-built flat in Sandbanks in November 1997. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by 90 years. Similar properties in Sandbanks with 100 year plus lease were worth £166,400. The mid-range ground rent payable was £60 collected per annum. The lease expired on 22 March 2080. Given that there were 54 years remaining we calculated the compensation to the landlord to extend the lease to be within £32,300 and £37,400 not including fees.

Sandbanks case:

Last Autumn we were approach by Mr Isaac Morel , who completed a recently refurbished flat in Sandbanks in May 2008. We are asked if we could approximate the price could be for a 90 year extension to my lease. Identical premises in Sandbanks with a long lease were in the region of £232,800. The mid-range ground rent payable was £45 invoiced per annum. The lease lapsed on 26 September 2091. Having 65 years outstanding we approximated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 plus professional charges.