Main reasons to start your Banstead lease extension

Top reasons for lease extension now:

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

Chances are that if you own a flat in Banstead you actually own a long leasehold interest over your property

An extended lease is almost the same value as a freehold

Leasehold properties in Banstead with more than 100 years left 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 home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.

Lenders may decide not to lend on a short lease

Nearly all mortgage lenders require a lengthy amount of time left on any leasehold property before they will contemplate lending on it. Regardless of whether you need a mortgage, you should be conscious that it is likely that someone wishing to acquire your property in the future might well do, so if they can't secure a mortgage, then the value of your property will likely suffer. In the last decade the majority of banks and building societies have increased the required minimum lease length that they are willing to accept

Lender	Requirement
Barnsley Building Society	60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.
Birmingham Midshires	Minimum 70 years from the date of the mortgage.
Chelsea Building Society	85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower.
Lloyds TSB Scotland	Minimum 70 years from the date of the mortgage.
Skipton Building Society	85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary

What makes us experts in Banstead lease extensions?

Engaging our service gives you increased control over the value of your Banstead leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Banstead Lease Extension Example Cases:

John, Banstead, Surrey,

John owned a high value apartment in Banstead being marketed with a lease of a few days over fifty eight years outstanding. John informally approached his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were John to invoke his statutory right. John obtained expert legal guidance and secured satisfactory deal informally and ending up with a market value flat.

Banstead case:

Last Christmas we were approach by Dr Kian Reed , who acquired a ground floor flat in Banstead in January 2002. We are asked if we could approximate the price would be for a 90 year extension to my lease. Similar homes in Banstead with a long lease were valued about £270,000. The average amount of ground rent was £55 billed quarterly. The lease ended in 2099. Given that there were 74 years unexpired we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of costs.

Decision in Sutton

An example of a Lease Extension decision for a Banstead flat is 33 The Maisonettes Alberta Avenue in June 2014. the Tribunal decided that the premium payable for the grant of a new lease be the sum of £20,680 (Twenty Thousand six hundred and eighty pounds). This case affected 1 flat. The unexpired lease term was 60.43 years.

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