Top reasons for Sanderstead lease extension

Why you should commence your Sanderstead lease extension today:

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

The market value of a leasehold property in Sanderstead is impacted by how long the lease has left to run. If it is close to or fewer than 80 years you should expect difficulties on re-sale, so it is recommended to arrange for the lease to be extended prior to buying. It is preferable to start the lease extension process when the lease still has 82 years to run so that a lease extension can be finalised well before the eighty year threshold. Leasehold Reform legislation enables Sanderstead qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus an additional term of ninety years. The reason of the valuation is to arrive at an opinion of the sum 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

It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.

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

Nearly all mortgage lenders will not lend on a lease with less than seventy years remaining - although this varies between mortgage companies. A purchaser will no doubt encounter difficulties in obtaining a mortgage and this will result in your Sanderstead property being difficult to dispose of or refinance.

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

The conveyancing solicitors that we work with handle Sanderstead lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.

Sanderstead Lease Extension Case Studies:

Alisha, Sanderstead, South London,

Off the back of protracted negotiations with the landlord of her one bedroom flat in Sanderstead, Alisha started the lease extension process just as the lease was nearing the crucial eighty-year deadline. The transaction was finalised in July 2015. The freeholder’s costs were negotiated to below 550 pounds.

Sanderstead case:

Mr and Mrs. B Sánchez took over the lease of a basement apartment in Sanderstead in September 2001. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by a further 90 years. Comparable homes in Sanderstead with a long lease were valued around £243,000. The average amount of ground rent was £65 collected yearly. The lease ended in 2089. Given that there were 63 years as a residual term we estimated the premium to the landlord to extend the lease to be within £20,000 and £23,000 not including expenses.