Top reasons for Saltdean lease extension

Why you should start your Saltdean lease extension today:

Increase your lease and increase your Saltdean property value

The market value of a leasehold property in Saltdean depends on how many years the lease has left to run. If it is near to or fewer than eighty years you should foresee difficulties on re-sale, so it is recommended to arrange for a lease extension prior to buying. Ideally one should start the process of extending the lease is when the lease still has 82 years to run so that formalities can be finalised prior to the eighty year threshold. Leasehold Reform legislation entitles Saltdean qualifying lessees to a 90 year extension added to their residual lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.

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

Leasehold premises in Saltdean with more than 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.

Mortgage lenders may not finance a property with a short lease

Lenders are really restricting their approach as regards to homes in Saltdean with short leases. For instance you may find that their lending criteria are stricter and that they adjust interest rates depending on the unexpired lease term. Some may even refuse to lend completely, so where you needed to sell, your remaining options would be to find a cash purchaser, or try your luck at auction thus limiting the number of prospective purchasers.

Why use us for your lease extension in Saltdean?

Irrespective of whether you are a tenant or a landlord in Saltdean,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Saltdean valuers.

Saltdean Lease Extension Case Summaries:

Mason, Saltdean, East Sussex

Last year Mason, came dangerously near to the eighty-year mark with the lease on his first floor flat in Saltdean. In buying his property twenty years ago, the length of the lease was of minimal concern. As luck would have it, it dawned on him that he needed to take action soon on a lease extension. Mason extended the lease just under the wire in July. Mason and the freeholder eventually settled on a premium of £5,500 . If the lease had slipped below 80 years, the figure would have gone up by at least £925.

Saltdean case:

In 2013 we were phoned by Dr L Stewart who, having owned a basement flat in Saltdean in November 1997. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by 90 years. Identical premises in Saltdean with an extended lease were valued around £290,000. The average amount of ground rent was £45 billed per annum. The lease ended on 8 January 2098. Considering the 72 years remaining we estimated the premium to the landlord to extend the lease to be within £12,400 and £14,200 plus costs.

Saltdean case:

Last Winter we were phoned by Mr and Mrs. W Thompson , who completed a one bedroom apartment in Saltdean in June 2007. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by a further 90 years. Similar premises in Saltdean with a long lease were valued around £233,200. The mid-range ground rent payable was £60 billed quarterly. The lease end date was on 26 April 2087. Having 61 years unexpired we calculated the compensation to the landlord for the lease extension to be within £22,800 and £26,400 exclusive of expenses.