Why you should commence your Sandy lease extension

Why you should commence your Sandy lease extension today:

Increase your lease and increase your Sandy property value

The market value of Sandy leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate significantly once the remaining term is less than 80 years

An extended lease is almost the same value as a freehold

Leasehold premises in Sandy with more than 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth 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 service charges merit it.

Mortgage lenders will not finance a property with a short lease

Many banks and building societies will not grant a mortgage on a lease with under 70 years unexpired - although this varies between mortgage companies. A purchaser will undoubtedly encounter difficulties in obtaining a mortgage and this could result in your Sandy property being difficult to dispose of or refinance.

Why use us for your lease extension in Sandy?

The lawyers that we work with handle Sandy 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 conveyancing solicitor we work with provide it.

Sandy Lease Extension Example Cases:

Milo, Sandy, Bedfordshire

Last October Milo, started to get near to the 80-year mark with the lease on his first floor apartment in Sandy. Having purchased his home 18 years ago, the length of the lease was of no concern. Luckily, he became aware that he would soon be paying an escalated premium for a lease extension. Milo arranged for a lease extension at the eleventh hour in July. Milo and the landlord who owned the flat above in the end agreed on sum of £6,000 . If he had missed the deadline, the price would have increased by at least £1,150.

Sandy case:

In 2011 we were phoned by Mr and Mrs. R Petit who, having purchased a ground floor flat in Sandy in January 2003. The dilemma was if we could shed any light on how much (approximately) price would likely be to prolong the lease by 90 years. Comparable residencies in Sandy with 100 year plus lease were valued around £255,000. The average ground rent payable was £50 collected monthly. The lease lapsed in 2097. Given that there were 71 years left we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including professional charges.

Sandy case:

Ms L Morris purchased a ground floor apartment in Sandy in May 2012. The question was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Identical flats in Sandy with an extended lease were in the region of £254,200. The mid-range amount of ground rent was £60 invoiced monthly. The lease ran out on 25 October 2077. Taking into account 51 years outstanding we calculated the premium to the freeholder for the lease extension to be between £43,700 and £50,600 plus expenses.