Top reasons for Banstead lease extension

Why you should commence your Banstead lease extension today:

Increase your lease and increase your Banstead property value

Owning a apartment usually means owning a lease of the property, which has a set term of years. This lease will ordinarily be granted for a set period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Banstead. Clearly, the period of lease left reduces as time goes by. This is often ignored and only raises itself as an issue when the residence needs to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to obtain a lease extension. Eligible long lease owners in Banstead have the right to extend the lease for an additional ninety years in accordance with legislation. Please give due consideration before delaying your Banstead lease extension. Putting off that expense now likely increases the price you will ultimately have to pay for a lease extension

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.

Lending institutions may decide not to lend on a short lease

Lenders are making their criteria more stringent and many now expect flats to have a minimum of 60 if not 70 years remaining once the mortgage has expired. Given that plenty of flats in Banstead were created in the fifties, sixties and seventies this means many now require lease extensions if they if they are to be mortgageable.

What makes us experts in Banstead lease extensions?

Lease extensions in Banstead can be a difficult process. We recommend you secure guidance from a conveyancer and valuer well versed in the legislation and lease extension process.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Banstead lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Banstead Lease Extension Example Cases:

Jamie, Banstead, Surrey,

Jamie was the the leasehold owner of a conversion apartment in Banstead on the market with a lease of just over fifty eight years unexpired. Jamie informally spoke with his landlord being a well known London-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jamie to exercise his statutory right. Jamie procured expert advice and was able to make a more informed judgement and deal with the matter and sell the flat.

Banstead case:

Last Christmas we were called by Mr E Fournier , who purchased a garden apartment in Banstead in June 2008. The dilemma was if we could approximate the price would likely be to extend the lease by 90 years. Similar properties in Banstead with an extended lease were valued around £250,000. The average amount of ground rent was £50 billed yearly. The lease end date was on 4 January 2095. Considering the 69 years as a residual term we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus expenses.