Why you should commence your Sanderstead lease extension

Top reasons for lease extension now:

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

Owning a flat usually means owning a lease of the property, which has a finite term of years. The lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Sanderstead. Inevitably, the period of lease remaining shortens over time. This is often ignored and only raises itself as an issue when the flat or house needs to be disposed of or refinanced. The fewer the years remaining the less it is worth and the more it will cost to obtain a lease extension. Eligible leaseholders in Sanderstead have the right to extend the lease for an additional 90 years under Leasehold Reform legislation. Please give careful consideration before putting off your Sanderstead lease extension. Putting off the cost now likely increases the price you will ultimately incur to extend your lease

An extended lease is almost the same value as a freehold

Leasehold properties in Sanderstead with more than one hundred years remaining on the lease are often regarded as a ‘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 maintenance charges warrant it.

Banks and Building Societies may not issue a mortgage with a short lease

Nearly all banks and building societies will be unwilling to lend on a lease with under seventy years left to run - although this varies from lender to lender. A buyer will likely find it difficult in obtaining a mortgage and this will result in your Sanderstead property becoming difficult to dispose of or to obtain finance on.

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

The conveyancers 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 conveyancer we work with provide it.

Sanderstead Lease Extension Case Studies:

Megan, Sanderstead, South London,

After lengthy negotiations with the freeholder of her ground floor apartment in Sanderstead, Megan initiated the lease extension process just as the lease was coming close to the all-important 80-year mark. The transaction completed in August 2014. The landlord’s fees were kept to an absolute minimum.

Sanderstead case:

Last Spring we were phoned by Dr J Patel , who was assigned a lease of a newly refurbished apartment in Sanderstead in May 2007. We are asked if we could estimate the premium would likely be to extend the lease by ninety years. Comparative residencies in Sanderstead with an extended lease were in the region of £210,000. The mid-range amount of ground rent was £50 billed quarterly. The lease expiry date was in 2106. Having 80 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 not including costs.