Main reasons to start your Banstead lease extension

Why you should start your Banstead lease extension today:

Increase your lease and increase your Banstead property value

Unfortunately that a Banstead residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Banstead property prices.Where your lease has approximately 90 years left, you should start considering a lease extension. If lease term falls below 80 years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Banstead will be able to extend under the legislation; however a lawyer should be able to clarify whether you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your conveyancer for the duration of the process.

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

Leasehold premises in Banstead with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.

Mortgage lenders may not lend on a short lease

Most banks and building societies require a lengthy amount of time remaining on a leasehold residence before they will contemplate it as adequate security. Regardless of whether you need a mortgage, you should be conscious that it is probable that someone wishing to purchase your property in the future might well do, so where they are unable to obtain a mortgage, then the financial worth of your property could suffer. Since 2008 most mortgage lenders have increased the required minimum lease length that they are prepared to grant a mortgage on

What makes us experts in Banstead lease extensions?

Using our service gives you increased control over the value of your Banstead leasehold, as your property will be more valuable and marketable in relation to the lease length should you want 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:

Henry, Banstead, Surrey,

Henry owned a 2 bedroom apartment in Banstead being marketed with a lease of just over fifty eight years outstanding. Henry on an informal basis contacted his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 yearly. Ordinarily, ground rent would not be payable on a lease extension were Henry to exercise his statutory right. Henry procured expert advice and secured an acceptable deal informally and ending up with a market value flat.

Banstead case:

Last Spring we were contacted by Mr and Mrs. N Young , who purchased a one bedroom apartment in Banstead in May 2008. The dilemma was if we could estimate the premium would be to extend the lease by a further 90 years. Similar residencies in Banstead with a long lease were in the region of £275,000. The average amount of ground rent was £55 billed annually. The lease ran out on 1 November 2102. Considering the 76 years remaining we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.