Why you should commence your South Sutton lease extension

Top reasons for lease extension now:

A South Sutton lease depreciates with the years remaining on the lease.

South Sutton leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying South Sutton residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in South Sutton you would be well advised to investigate if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value

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

Leasehold properties in South Sutton with in excess of 100 years left 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 freehold unless savings on ground rent and maintenance charges justify it.

Mortgage lenders will not grant a mortgage with a short lease

Banks and building societies are really clamping down as regards to properties in South Sutton with short leases. For instance you may find that their lending requirements are stricter and that they adjust interest rates depending on the unexpired lease term. Some may even refuse to lend completely, so if you wanted to sell, your remaining options would be to find a cash purchaser, or hope for the best at auction thus reducing the amount of potential purchasers.

What makes us experts in South Sutton lease extensions?

Irrespective of whether you are a tenant or a landlord in South Sutton,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with South Sutton valuers.

South Sutton Lease Extension Case Summaries:

Theo, South Sutton, Surrey,

Theo owned a 2 bedroom flat in South Sutton being marketed with a lease of a little over 59 years left. Theo informally spoke with his freeholder being a well known Bristol-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 subject to a new rent initially set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Theo to invoke his statutory right. Theo procured expert legal guidance and was able to make an informed judgement and handle with the matter and sell the flat.

South Sutton case:

Last Spring we were phoned by Mr and Mrs. B Lewis , who owned a basement apartment in South Sutton in May 2008. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Similar homes in South Sutton with a long lease were worth £250,000. The mid-range amount of ground rent was £50 collected annually. The lease elapsed on 8 February 2095. Considering the 69 years outstanding we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus costs.

South Sutton case:

Mr I Turner completed a purpose-built apartment in South Sutton in March 2001. We are asked if we could approximate the premium would likely be for a 90 year extension to my lease. Identical flats in South Sutton with a long lease were in the region of £285,000. The mid-range ground rent payable was £55 invoiced yearly. The lease came to a finish on 8 April 2106. Considering the 80 years left we approximated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 plus fees.