Why you should start your Sittingbourne lease extension

Why you should commence your Sittingbourne lease extension today:

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

Unfortunately that a Sittingbourne residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Sittingbourne property market.Where your lease has approximately ninety years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under eighty years - otherwise a higher premium will be due. Most leasehold owners in Sittingbourne will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the formalities.

An extended lease is almost the same value as a freehold

It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the premises will be worth the same as a freehold for many years in the future.

Lending institutions will not issue a mortgage with a short lease

Banks and building societies do not grant a mortgage on short residential leases. You are likely to encounter problems where you want to sell your flat in Sittingbourne if the unexpired term of your lease is under the criteria set by the majority of mortgage companies. Different mortgage companies have different requirements but generally theyrequire an unexpired term of at least seventy years.

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

Retaining our service gives you better control over the value of your Sittingbourne 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.

Sittingbourne Lease Extension Case Summaries:

Rebecca, Sittingbourne, Kent,

After unsuccessful discussions with the freeholder of her basement apartment in Sittingbourne, Rebecca initiated the lease extension process as the 80 year mark was fast approaching. The transaction completed in February 2005. The landlord’s costs were kept to an absolute minimum.

Sittingbourne case:

Last month we were called by Mr and Mrs. I Collins , who bought a ground floor flat in Sittingbourne in February 1995. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Similar premises in Sittingbourne with 100 year plus lease were worth £223,400. The average amount of ground rent was £60 collected monthly. The lease ended on 16 February 2085. Considering the 59 years unexpired we calculated the premium to the landlord to extend the lease to be between £27,600 and £31,800 exclusive of expenses.

Sittingbourne case:

In 2014 we were contacted by Mr W Watson who, having completed a garden flat in Sittingbourne in February 2012. The dilemma was if we could approximate the premium would be to extend the lease by a further 90 years. Comparable residencies in Sittingbourne with a long lease were worth £210,000. The average ground rent payable was £50 collected yearly. The lease came to a finish on 13 February 2106. Given that there were 80 years left we estimated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 plus fees.