Why you should start your Sandringham lease extension

Top reasons for lease extension now:

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

The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Sandringham can extend the lease for an additional ninety years under Leasehold Reform legislation. Please give careful consideration before delaying your Sandringham lease extension. Shelving the costs today simply escalates the amount you will eventually have to pay to extend the lease.

An extended lease has roughly the same value as a freehold

It is generally considered that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the residence will be equivalent in value to a freehold for many years ahead.

Lending institutions will not finance a property with a short lease

The definition of a short lease depends on the specific mortgage company, yet lending institutions start to become nervous at around 75 years. This will be problematic when you wish to sell or refinance your property as it will be effectively unmortgageable. You might have no immediate desire to sell but when you do your purchaser must wait 2 years before being able to exercise the right to a an extension to the lease.

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

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

Sandringham Lease Extension Example Cases:

Milo, Sandringham, Norfolk,

Milo owned a studio flat in Sandringham being marketed with a lease of a few days over 59 years outstanding. Milo on an informal basis approached his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Milo to exercise his statutory right. Milo obtained expert advice and secured an acceptable resolution informally and sell the property.

Sandringham case:

Last Christmas we were approach by Ms O Lefèvre , who owned a one bedroom apartment in Sandringham in April 2001. We are asked if we could approximate the premium would be for a ninety year lease extension. Identical premises in Sandringham with an extended lease were valued about £280,000. The mid-range ground rent payable was £45 billed monthly. The lease lapsed in 2096. Given that there were 70 years outstanding we approximated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 plus costs.

Sandringham case:

In 2012 we were contacted by Dr C Bennett who, having purchased a recently refurbished apartment in Sandringham in March 2006. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Comparable homes in Sandringham with an extended lease were valued about £223,400. The mid-range amount of ground rent was £60 collected every twelve months. The lease finished on 15 February 2085. Considering the 59 years left we approximated the premium to the freeholder for the lease extension to be between £27,600 and £31,800 not including legals.