Main reasons to commence your Sonning Common lease extension

Why you should commence your Sonning Common lease extension today:

A Sonning Common leasehold property depreciates with the years remaining on the lease.

For anyone whose Sonning Common property is held on a long lease, our message is clear – if you do nothing, your property will eventually revert to the freeholder, leaving you empty-handed. The shorter the lease the less it is worth and the more it will cost to extend the lease.

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

Leasehold residencies in Sonning Common with in excess of 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.

Banks and Building Societies will not issue a mortgage on a short lease

Banks and Building Societies have specific criteria when loaning monies charged on leasehold property. Many will simply not lend at all once an unexpired lease term falls lower than a certain unexpired lease term. Many Banks and Building Societies will not regard property with an unexpired term of less than 75 years as acceptable security. In addition to this being important when selling, it is also relevant if you are wanting to refinance your Sonning Common home.

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

Retaining our service will provide you increased control over the value of your Sonning Common leasehold, as your property will be more valuable and marketable in respect of 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.

Sonning Common Lease Extension Case Summaries:

Teddy, Sonning Common, Oxfordshire,

Teddy owned a conversion apartment in Sonning Common being sold with a lease of fraction over fifty eight years remaining. Teddy informally contacted his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £200 yearly. Ordinarily, ground rent would not be due on a lease extension were Teddy to invoke his statutory right. Teddy obtained expert advice and was able to make a more informed judgement and handle with the matter and readily saleable.

Sonning Common case:

In 2014 we were contacted by Mr and Mrs. L Roux who, having acquired a one bedroom apartment in Sonning Common in March 2001. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparative residencies in Sonning Common with an extended lease were valued about £200,000. The average amount of ground rent was £50 billed every twelve months. The lease ended in 2104. Having 78 years left we approximated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 not including fees.

Sonning Common case:

In 2012 we were contacted by Mrs G Howard who, having bought a one bedroom flat in Sonning Common in August 2000. The question was if we could shed any light on how much (approximately) price would be for a 90 year lease extension. Comparable properties in Sonning Common with 100 year plus lease were worth £267,600. The mid-range amount of ground rent was £65 billed quarterly. The lease ended on 20 August 2093. Considering the 67 years outstanding we estimated the premium to the landlord to extend the lease to be between £14,300 and £16,400 exclusive of expenses.