Top reasons for Sandbach lease extension

Top reasons for lease extension now:

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

Unfortunately that a Sandbach residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Sandbach property market.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under 80 years - otherwise a higher amount will be payable. The majority of leasehold owners in Sandbach will be able to extend under the legislation; however a conveyancer should be able to confirm if you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer throughout the formalities.

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

Leasehold residencies in Sandbach with in excess of one hundred 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 premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.

Banks and Building Societies will not lend on a short lease

The propensity since over the last decade has been for lenders to tighten lending criteria generally - this has extended to the types of security over which the home loan is to be charged. This has meant the minimum number of years remaining under the lease required by banks has increased. In the past mortgage companies would grant a mortgage on a lease with twenty years plus the term of the loan - routinely fifty year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many use a minimum term of 75 years as standard.

What makes us experts in Sandbach lease extensions?

Engaging our service gives you better control over the value of your Sandbach leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Sandbach Lease Extension Case Studies:

Jonathan, Sandbach, Cheshire,

Jonathan owned a conversion apartment in Sandbach on the market with a lease of a few days over 59 years left. Jonathan on an informal basis approached his landlord being a well known London-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 annually. Ordinarily, ground rent would not be due on a lease extension were Jonathan to exercise his statutory right. Jonathan procured expert legal guidance and secured satisfactory resolution without resorting to tribunal and ending up with a market value flat.

Sandbach case:

In 2009 we were called by Dr Muhammad Brown who, having acquired a first floor apartment in Sandbach in August 2002. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year lease extension. Identical premises in Sandbach with an extended lease were valued around £200,800. The average amount of ground rent was £65 billed annually. The lease came to a finish in 2086. Given that there were 60 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £20,900 and £24,200 exclusive of expenses.

Sandbach case:

Last year we were called by Dr S Anderson , who was assigned a lease of a first floor flat in Sandbach in July 2000. The dilemma was if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Identical residencies in Sandbach with a long lease were in the region of £255,000. The mid-range amount of ground rent was £50 billed quarterly. The lease finished in 2097. Considering the 71 years remaining we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus expenses.