Why you should commence your Sandhurst lease extension

Top reasons for lease extension now:

Increase your lease and increase your Sandhurst property value

Sandhurst leases on residential deteriorating in value. if your lease has in the region of 90 years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for the lease extension to be in place before the term of the current lease falls under eighty years - otherwise a higher premium will be due. Flat owners in Sandhurst will mostly be legally entitled to a lease extension; however a solicitor should be able confirm your eligibility. In certain circumstances you may not be entitled. There are prescribed timetables and formalities to comply with once the process has commenced so it’s sensible to be guided by a lawyer during the process.

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

Leasehold properties in Sandhurst with over 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.

Mortgage lenders may not grant a mortgage on a short lease

Mortgage companies are tightening their criteria and a meaningful number now expect flats to have at least 60 if not 70 years left once the mortgage has expired. Given that plenty of flats in Sandhurst were built in the 1950s, 1960s and 1970s as a result many now require lease extensions if they wish to get a mortgage.

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

Retaining our service gives you enhanced control over the value of your Sandhurst leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Sandhurst Lease Extension Case Summaries:

Jack, Sandhurst, Berkshire

14 months ago Jack, came critically close to the eighty-year threshold with the lease on his ground floor apartment in Sandhurst. In buying his property 18 years previously, the unexpired term was of no interest. Luckily, he realised he needed to take steps soon on Extending the lease. Jack extended the lease just ahead of time in January. Jack and the freeholder via the managing agents subsequently settled on sum of £5,000 . If he had missed the deadline, the figure would have escalated by a minimum £1,100.

Sandhurst case:

Last Spring we were phoned by Dr Dexter James , who moved into a one bedroom flat in Sandhurst in February 2011. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year lease extension. Comparable residencies in Sandhurst with 100 year plus lease were in the region of £275,000. The average ground rent payable was £65 billed quarterly. The lease concluded in 2094. Taking into account 68 years unexpired we calculated the premium to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of costs.

Sandhurst case:

In 2009 we were contacted by Mr G Gray who, having took over the lease of a first floor flat in Sandhurst in July 1998. The dilemma was if we could approximate the price would be for a ninety year lease extension. Comparable properties in Sandhurst with 100 year plus lease were worth £208,600. The mid-range ground rent payable was £60 invoiced annually. The lease came to a finish in 2083. Given that there were 57 years left we calculated the premium to the freeholder to extend the lease to be within £30,400 and £35,200 exclusive of legals.