Main reasons to start your Sanderstead lease extension

Main reasons to start your Sanderstead lease extension today:

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

The closer a domestic lease in Sanderstead nears to zero years unexpired, the more it reduces the value of the property. If the residual term has, beyond 99 years remaining then this decrease may be negligible however there will become a point in time when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should consider extending sooner as opposed to later. The majority of flat owners in Sanderstead will qualify for this right; however a conveyancing solicitor can confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.

An extended lease has roughly the same value as a freehold

Leasehold premises in Sanderstead with in excess of one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.

Banks and Building Societies may decide not to loan monies with a short lease

Whether or not the lease is be regarded as a short lease varies by mortgage company, yet mortgage lenders start to get nervous at around 75 years. This may be problematic once you need to dispose of or refinance your property as it will be practically unmortgageable. Even though you may not have an immediate plan to sell but when you do your purchaser will need to wait 2 years before being able to exercise the right to a an extension to the lease.

Get in touch with one of our Sanderstead lease extension solicitors or enfranchisement solicitors

Engaging our service will provide you enhanced control over the value of your Sanderstead leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Sanderstead Lease Extension Example Cases:

Toby, Sanderstead, South London

In recent months Toby, started to get near to the eighty-year threshold with the lease on his studio flat in Sanderstead. In buying his flat 19 years ago, the unexpired term was of minimal importance. Luckily, he recognised he would imminently be paying an inflated amount for Extending the lease. Toby arranged for a lease extension just ahead of time in June. Toby and the freeholder via the management company in the end agreed on an amount of £5,000 . If the lease had gone lower than eighty years, the premium would have gone up by at least £1,100.

Sanderstead case:

Last Winter we were called by Mr Liam Hernández , who completed a purpose-built apartment in Sanderstead in June 2000. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Comparable properties in Sanderstead with 100 year plus lease were valued around £216,000. The average amount of ground rent was £60 invoiced annually. The lease ran out on 26 November 2084. Considering the 58 years remaining we approximated the premium to the landlord for the lease extension to be within £28,500 and £33,000 plus legals.