Why you should commence your Sipson lease extension

Main reasons to commence your Sipson lease extension today:

Increase your lease and increase your Sipson property value

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. It is the case that most Sipson tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Sipson you should check if your lease has between seventy and ninety years remaining. There are compelling reasons why a Sipson leaseholder with a lease having around 80 years remaining should take steps to ensure that a lease extension is effected without delay

An extended lease has roughly the same value as a freehold

It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.

Lenders may decide not to lend on a short lease

The trend since the credit crunch has been for lenders to tighten lending requirements generally - this has extended to the property over which the home loan is to be granted. This has meant the unexpired lease term required by lenders has increased. Historically lenders would grant a mortgage on a lease with twenty years plus the term of the loan - routinely fifty year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many now have a minimum term of 75 years as standard.

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

Regardless of whether you are a tenant or a freeholder in Sipson,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Sipson valuers.

Sipson Lease Extension Case Summaries:

Hollie, Sipson, West London,

Trailing protracted correspondence with the freeholder of her first floor flat in Sipson, Hollie started the lease extension process just as her lease was approaching the critical 80-year deadline. The lease extension completed in July 2015. The freeholder’s fees were restricted to below five hundred GBP.

Sipson case:

Mr and Mrs. B Morris acquired a one bedroom apartment in Sipson in January 1995. The question was if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by ninety years. Similar properties in Sipson with an extended lease were in the region of £254,200. The mid-range amount of ground rent was £60 billed annually. The lease termination date was on 7 September 2076. Taking into account 51 years remaining we calculated the compensation to the freeholder to extend the lease to be within £43,700 and £50,600 not including expenses.