Top reasons for Sevenoaks lease extension

Main reasons to start your Sevenoaks lease extension today:

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

The only way is down when it comes to Sevenoaks lease terms. Sevenoaks flats that have a residual term fewer than eighty years will de-escalate in value at a rapid rate, and the cost to extend your lease will rise.

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

Leasehold properties in Sevenoaks with in excess of one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.

Banks and Building Societies may decide not to grant a mortgage on a short lease

The trend since 2008 has been for mortgage companies to tighten lending requirements generally - this has extended to the property over which the mortgage is to be granted. This has meant the unexpired lease term required by banks has increased. In the past banks were content with twenty years plus the term of the loan - routinely fifty year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many use a minimum term of 75 years as standard.

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

Using our service will provide you better control over the value of your Sevenoaks 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 have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Sevenoaks Lease Extension Case Studies:

Reuben, Sevenoaks, Kent

Half a year ago Reuben, started to get close to the eighty-year mark with the lease on his basement apartment in Sevenoaks. In buying his property 18 years ago, the lease term was of little bearing. Fortunately, it dawned on him that he would imminently be paying an escalated premium for Extending the lease. Reuben extended the lease just in the nick of time last April. Reuben and the freeholder via the managing agents in the end settled on an amount of £5,500 . If the lease had dropped below 80 years, the premium would have become more exhorbitant by at least £875.

Sevenoaks case:

In 2010 we were phoned by Mr and Mrs. W Smith who, having acquired a recently refurbished apartment in Sevenoaks in March 2000. The dilemma was if we could estimate the premium would likely be to prolong the lease by an additional years. Similar homes in Sevenoaks with a long lease were worth £183,600. The mid-range ground rent payable was £65 billed quarterly. The lease lapsed in 2083. Given that there were 57 years unexpired we approximated the premium to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of expenses.

Sevenoaks case:

Last Christmas we were phoned by Mr and Mrs. I Jones , who completed a recently refurbished flat in Sevenoaks in April 1995. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by ninety years. Similar residencies in Sevenoaks with a long lease were valued around £245,000. The mid-range amount of ground rent was £45 collected monthly. The lease ended in 2094. Having 68 years outstanding we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of costs.