Why you should commence your Sevenoaks lease extension

Top reasons for lease extension now:

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

The market value of Sevenoaks leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense 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 residencies in Sevenoaks with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.

Lenders may not issue a mortgage with a short lease

Most banks and building societies require a lengthy amount of time left on any leasehold residence before they will consider providing a mortgage on it. Even if you don't need a mortgage, you should keep in mind that it is reasonable to assume that someone wishing to buy your property in the future might well do, so in the event that they are unable to get a mortgage, then the market price of the property could be adversely impacted. In the last decade many mortgage lenders have increased the required minimum lease length that they are prepared to accept

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

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

Sevenoaks Lease Extension Example Cases:

Adam, Sevenoaks, Kent

Last Autumn Adam, came critically close to the 80-year threshold with the lease on his basement flat in Sevenoaks. In buying his home two decades ago, the length of the lease was of minimal significance. Thankfully, he became aware that he would soon be paying an escalated premium for a lease extension. Adam arranged for a lease extension just in the nick of time last July. Adam and the freeholder in the end agreed on the final figure of £5,500 . If the lease had dipped below eighty years, the price would have escalated by a minimum £1,050.

Sevenoaks case:

In 2010 we were contacted by Ms E Lewis who, having took over the lease of a one bedroom flat in Sevenoaks in March 2002. The dilemma was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable residencies in Sevenoaks with 100 year plus lease were in the region of £270,000. The average ground rent payable was £55 invoiced annually. The lease expired on 19 August 2102. Taking into account 76 years unexpired we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including professional charges.

Sevenoaks case:

Dr M Howard acquired a ground floor flat in Sevenoaks in October 1998. The question was if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Comparative premises in Sevenoaks with an extended lease were worth £176,200. The average ground rent payable was £65 invoiced annually. The lease terminated in 2082. Given that there were 56 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £29,500 and £34,000 exclusive of costs.