Why you should commence your Sandwich lease extension

Main reasons to commence your Sandwich lease extension today:

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

As the the remaining lease term of a Sandwich domestic lease decreases so does its value and therefore the value of your property. If the lease has, over one hundred years to run then this decrease may be of little impact nevertheless there will become a point in time when a lease has fewer than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should extend the lease sooner than later. Most flat owners in Sandwich will qualify for this right; nevertheless a lawyer should be able to advise whether you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.

Sandwich property with a lease extension has roughly the same value as a freehold

Leasehold premises in Sandwich with more than one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.

Banks and Building Societies will not finance a property with a short lease

Banks and building societies are really restricting their approach as regards to properties in Sandwich with short leases. For instance you may find that their lending criteria are stricter and that they adjust interest rates depending on the unexpired lease term. Some may even refrain from lending completely, so where you needed to sell, your remaining options would be to find a cash buyer, or try your luck at auction thus limiting your market.

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

Irrespective of whether you are a tenant or a landlord in Sandwich,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Sandwich valuers.

Sandwich Lease Extension Case Studies:

Aaron, Sandwich, Kent

Last year Aaron, started to get close to the eighty-year mark with the lease on his one bedroom flat in Sandwich. In buying his flat 19 years previously, the unexpired term was of little importance. Luckily, he realised he would soon be paying an escalated premium for a lease extension. Aaron arranged for a lease extension just under the wire last January. Aaron and the freeholder via the management company in the end agreed on the final figure of £6,000 . If he failed to meet the deadline, the figure would have become more costly by a minimum £1,050.

Sandwich case:

Mr and Mrs. L Cook bought a purpose-built apartment in Sandwich in August 2007. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by ninety years. Similar flats in Sandwich with 100 year plus lease were valued about £275,000. The mid-range ground rent payable was £55 billed per annum. The lease concluded in 2102. Given that there were 76 years unexpired we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of fees.

Sandwich case:

Last January we were called by Ms L Stewart , who acquired a purpose-built apartment in Sandwich in October 2007. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Comparable homes in Sandwich with a long lease were valued around £176,200. The average amount of ground rent was £65 billed yearly. The lease lapsed in 2082. Taking into account 56 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £29,500 and £34,000 exclusive of legals.