Top reasons for Surbiton lease extension

Why you should start your Surbiton lease extension today:

A Surbiton lease depreciates with the years remaining on the lease.

As the length of the unexpired term of a Surbiton residential lease lessens so does its value and therefore the value of your property. Where the residual term has, in excess of one hundred years remaining then this decrease may be negligible nevertheless there will become a stage when a lease has fewer than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main rational as to why you should consider extending sooner than later. Many flat owners in Surbiton will meet the qualifying criteria; that being said a conveyancing solicitor will be able to confirm if you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.

Surbiton property with a lease extension is almost the same value as a freehold

Leasehold properties in Surbiton with over 100 years outstanding on the lease are often referred to as ‘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 to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.

Lenders will not issue a mortgage on a short lease

Mortgage lenders have specific criteria when lending monies charged on leasehold property. Some will simply not lend at all once the remaining lease term drops lower than a specified unexpired lease term. Many Mortgage lenders will not consider property with an unexpired below seventy years suitable security. As well as this being important when selling, it is also relevant where you are seeking to refinance your Surbiton property.

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

The conveyancers that we work with procure Surbiton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.

Surbiton Lease Extension Example Cases:

Luca, Surbiton, South West London,

Luca owned a 2 bedroom apartment in Surbiton on the market with a lease of fraction over 61 years left. Luca on an informal basis contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 annually. Ordinarily, ground rent would not be due on a lease extension were Luca to exercise his statutory right. Luca procured expert legal guidance and was able to make a more informed decision and deal with the matter and readily saleable.

Surbiton case:

In 2010 we were contacted by Mrs U Clark who, having bought a one bedroom apartment in Surbiton in September 2010. We are asked if we could shed any light on how much (approximately) premium would likely be to prolong the lease by an additional years. Similar premises in Surbiton with 100 year plus lease were in the region of £206,200. The mid-range ground rent payable was £55 billed per annum. The lease expired on 10 January 2082. Taking into account 56 years left we approximated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 plus legals.