Why you should commence your Sandown lease extension

Top reasons for lease extension now:

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

Sandown leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Sandown residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Sandown you should see if your lease has between 70 and ninety years remaining. There are good reasons why a Sandown leaseholder with a lease having around 80 years remaining should take action to ensure that a lease extension is put in place without delay

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for many years in the future.

Mortgage lenders may not issue a mortgage on a short lease

Many banks and building societies insist on a lengthy amount of time left on a leasehold residence before they will contemplate providing a mortgage on it. Regardless of whether you require a mortgage, you should be mindful that it is reasonable to assume that someone wishing to buy your property in the future might well do, so if they can't obtain a mortgage, then the financial worth of the property will likely suffer. In the last decade the majority of mortgage lenders have increased the required minimum lease length that they are prepared to lend on

Why use us for your lease extension in Sandown?

Retaining our service will provide you better control over the value of your Sandown leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Sandown Lease Extension Example Cases:

Rosie, Sandown, Isle Of Wight,

Trailing unsuccessful discussions with the freeholder of her ground floor flat in Sandown, Rosie initiated the lease extension process just as the lease was approaching the all-important eighty-year mark. The transaction was concluded in August 2009. The freeholder’s charges were kept to an absolute minimum.

Sandown case:

In 2009 we were called by Mrs Imogen López who, having purchased a ground floor apartment in Sandown in October 2007. The dilemma was if we could approximate the price would be for a ninety year lease extension. Identical residencies in Sandown with an extended lease were in the region of £216,000. The average amount of ground rent was £60 collected annually. The lease finished in 2084. Taking into account 58 years remaining we estimated the premium to the landlord to extend the lease to be between £28,500 and £33,000 plus professional charges.

Sandown case:

Last Summer we were phoned by Mr Ibrahim Thompson , who owned a purpose-built apartment in Sandown in April 2012. The question was if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Comparable flats in Sandown with a long lease were worth £205,000. The average amount of ground rent was £50 invoiced per annum. The lease concluded on 10 February 2104. Given that there were 78 years outstanding we approximated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of legals.