Why you should start your Banstead lease extension

Why you should start your Banstead lease extension today:

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

There is no doubt about it a leasehold property in Banstead is a wasting asset as a result of the shortening lease. If the lease has, in excess of 100 years to run then this decrease may be fractional however there will become a stage when a lease has fewer than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should consider extending without delay. Many flat owners in Banstead will qualify for this right; however a lawyer should be able to advise if you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.

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

Leasehold residencies 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 premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.

Mortgage lenders may not grant a mortgage with a short lease

Lenders are making their criteria more stringent and a meaningful number now require flats to have a minimum of sixty if not seventy years remaining once the mortgage has expired. Considering plenty of flats in Banstead were built in the fifties, sixties and seventies as a result many now require lease extensions if they if they are to be mortgageable.

Why use us for your lease extension in Banstead?

Using our service will provide you better control over the value of your Banstead leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Banstead Lease Extension Example Cases:

Erin, Banstead, Surrey,

After unsuccessful correspondence with the landlord of her leasehold apartment in Banstead, Erin started the lease extension process as the eighty year mark was rapidly coming. The lease extension was finalised in April 2014. The freeholder’s costs were negotiated to below 500 pounds.

Banstead case:

Mr I King moved into a ground floor apartment in Banstead in July 2005. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Comparative flats in Banstead with an extended lease were valued around £225,400. The average ground rent payable was £45 invoiced monthly. The lease came to a finish on 10 November 2090. Taking into account 64 years remaining we estimated the compensation to the freeholder to extend the lease to be within £15,200 and £17,600 exclusive of professional charges.