Why you should start your Sipson lease extension

Top reasons for lease extension now:

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

Sipson leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Sipson enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Sipson you should check if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value

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

Leasehold premises in Sipson with over one hundred years unexpired 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 circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.

Mortgage lenders will not grant a mortgage with a short lease

Banks and Building Societies have set criteria when lending funds secured on leasehold homes. Some will simply refrain from lending at all once the residual lease term drops lower than a certain unexpired lease term. Many Lending institutions will not consider property with an unexpired below seventy years as acceptable security. As well as this being important when selling, it is also relevant where you are seeking to refinance your Sipson home.

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

Engaging our service gives you enhanced control over the value of your Sipson leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Sipson Lease Extension Case Studies:

Rebecca, Sipson, West London,

Off the back of protracted correspondence with the freeholder of her ground floor apartment in Sipson, Rebecca started the lease extension process just as her lease was nearing the critical eighty-year mark. The lease extension completed in March 2005. The landlord’s costs were kept to an absolute minimum.

Sipson case:

Ms I Harris acquired a purpose-built apartment in Sipson in July 2002. The question was if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Identical residencies in Sipson with a long lease were valued around £264,000. The average ground rent payable was £60 collected monthly. The lease expiry date was in 2079. Given that there were 53 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £37,100 and £42,800 not including fees.