Stop! Your Lease Extension in Sanderstead Could Be FREE

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Many leaseholders in Sanderstead are unaware that their original lawyer had a duty to warn them about future mortgageability and saleability issues. Before you pay thousands to your freeholder, let us audit your purchase history. You might have a claim that pays for your lease extension in full

If you are facing a significant premium because your lease in Sanderstead has dropped toward the 80-year mark, your previous lawyer may be at fault. Our panel of experts specialise in recovering lease extension costs from negligent firms who failed to protect your investment.

Why you should commence your Sanderstead lease extension

Main reasons to start your Sanderstead lease extension today:

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

The nearer a residential lease in Sanderstead nears to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, in excess of 125 years remaining then this decrease may be negligible that being said there will become a stage when a lease has less than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should consider extending without delay. Most flat owners in Sanderstead will meet the qualifying criteria; that being said a conveyancer will be able to advise whether you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.

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

Leasehold properties in Sanderstead with over 100 years remaining 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 reversionary interest unless savings on ground rent and estate charges justify it.

Banks and Building Societies will not loan monies on a short lease

The propensity since 2008 has been for mortgage companies to tighten lending criteria across the board - this has extended to the property over which the mortgage is to be charged. This has resulted in the unexpired lease term required by mortgage companies has increased. Historically mortgage companies would lend on a lease with 25 years plus the term of the loan - routinely fifty year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

Lender Requirement
Accord Mortgages 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower.
Chelsea Building Society 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower.
Godiva Mortgages A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion.
Halifax Minimum 70 years from the date of the mortgage.
Lloyds TSB Scotland Minimum 70 years from the date of the mortgage.

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 in-depth market knowledge and the close ties they enjoy with Sanderstead valuers.

Sanderstead Lease Extension Case Summaries:

Kate, Sanderstead, South London,

Following protracted correspondence with the freeholder of her first floor flat in Sanderstead, Kate started the lease extension process as the eighty year threshold was quickly approaching. The transaction was concluded in January 2011. The freeholder’s costs were kept to an absolute minimum.

Sanderstead case:

In 2009 we were e-mailed by Mrs Jessica Walker who, having purchased a ground floor flat in Sanderstead in October 2009. The dilemma was if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable homes in Sanderstead with a long lease were in the region of £184,000. The mid-range amount of ground rent was £55 billed monthly. The lease end date was in 2079. Taking into account 53 years unexpired we approximated the premium to the landlord for the lease extension to be between £28,500 and £33,000 exclusive of professional charges.

Decision in Croydon

An example of a Freehold Enfranchisement matter before the tribunal for a Sanderstead residence is The Woodlands 95 Purley Park Road in April 2009. The Tribunals own valuation produced the figure of £37,912. This case affected 6 flats. The unexpired residue of the current lease was 78.32 years.