Main reasons to start your Sanderstead lease extension

Why you should commence your Sanderstead lease extension today:

Increase your lease and increase your Sanderstead property value

The re-sale value of a leasehold property in Sanderstead depends on how long the lease has remaining. If it is near to or less than 80 years you should foresee problems on re-sale, so it is recommended to arrange for the lease to be extended ahead of purchasing. It is preferable to start the lease extension process when a lease still has 82 years to run so that formalities can be addressed ahead of the eighty year threshold. Statute entitles Sanderstead qualifying lessees to obtain a lease extension of ninety years in addition to the remaining lease term at a peppercorn rent (that is, rent free). The purpose of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.

An extended lease is almost the same value as a freehold

Leasehold properties in Sanderstead with in excess of 100 years unexpired on the lease are sometimes referred to as ‘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 to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.

Lenders may decide not to lend on a short lease

Whether or not the lease is be regarded as a short lease varies by mortgage company, yet banks and building societies start to get concerned at around 75 years. This may cause difficulties once you need to market or remortgage your property as it will be effectively unmortgageable. You may have no immediate intention to sell but when you do your purchaser must wait two years before they can exercise the right to a an extension to the lease.

Why use us for your lease extension in Sanderstead?

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

Sanderstead Lease Extension Example Cases:

Ellen, Sanderstead, South London,

In the wake of 6 months of lengthy discussions with the landlord of her one bedroom flat in Sanderstead, Ellen started the lease extension process just as her lease was approaching the crucial eighty-year mark. The lease extension completed in November 2013. The freeholder’s charges were restricted to a tad over 700 pounds.

Sanderstead case:

Dr O Harris took over the lease of a ground floor apartment in Sanderstead in July 2011. The question was if we could approximate the premium would likely be for a 90 year lease extension. Comparable flats in Sanderstead with 100 year plus lease were in the region of £240,600. The average ground rent payable was £60 billed annually. The lease finished in 2088. Having 62 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £21,900 and £25,200 exclusive of expenses.