Top reasons for Sunbury lease extension

Top reasons for lease extension now:

Increase your lease and increase your Sunbury property value

The re-sale value of a leasehold property in Sunbury is impacted by how many years the lease has remaining. If it is near to or fewer than 80 years you should foresee problems on re-sale, so it is recommended to arrange for the lease to be extended ahead of purchasing. It is preferable to start the process of extending the lease is when a lease still has 82 years remaining so that formalities can be addressed well before the eighty year cut off point. Leasehold Reform legislation enables Sunbury qualifying lessees to obtain a lease extension of ninety years on top of the remaining lease term at a peppercorn rent (that is, rent free). The purpose of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.

An extended lease is almost the same value as a freehold

It is generally accepted that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.

Lending institutions may decide not to loan monies on a short lease

The trend since the credit crunch has been for lenders to tighten lending criteria across the board - this has extended to the types of security over which the mortgage is to be granted. This has meant the minimum number of years remaining under the lease required by mortgage companies has increased. Historically mortgage companies were content with twenty years plus the term of the loan - routinely 50 year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many now have a minimum term of 75 years as a prerequisite.

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

Irrespective of whether you are a tenant or a freeholder in Sunbury,the lease extension lawyers 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 Sunbury valuers.

Sunbury Lease Extension Example Cases:

Logan, Sunbury, Surrey,

Logan was the the leasehold proprietor of a studio apartment in Sunbury on the market with a lease of fraction over fifty eight years unexpired. Logan informally approached his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 per annum. Ordinarily, ground rent would not be due on a lease extension were Logan to exercise his statutory right. Logan obtained expert legal guidance and secured satisfactory deal informally and readily saleable.

Sunbury case:

In 2014 we were approached by Mr Ali Cook who, having owned a basement apartment in Sunbury in May 2009. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year lease extension. Similar premises in Sunbury with 100 year plus lease were in the region of £254,200. The average ground rent payable was £60 collected yearly. The lease ran out on 10 July 2077. Having 51 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £43,700 and £50,600 not including legals.