Why you should start your Sunbury lease extension

Why you should commence your Sunbury lease extension today:

Increase your lease and increase your Sunbury property value

The re-sale value of a leasehold property in Sunbury depends on how long the lease has remaining. If it is near to or less than 80 years you should envisage difficulties on re-sale, so it is advisable to arrange for the lease to be extended prior to purchasing. It is ideal to start the lease extension process when the lease still has 82 years to run so that all matters can be finalised well before the 80 year cut off point. Statute enables Sunbury qualifying lessees to an additional term of ninety years in addition to the existing term, at a peppercorn rent (zero ground rent). The purpose of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.

An extended lease has roughly the same value as a freehold

Leasehold premises in Sunbury with over one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.

Banks and Building Societies may decide not to lend on a short lease

Banks and Building Societies have specific criteria when loaning monies secured on leasehold property. Many will simply not lend at all once an unexpired lease term falls lower than a specified unexpired lease term. Many Mortgage lenders will not regard property with an unexpired below seventy years suitable security. In addition to impacting your ability to sell, it is also relevant where you are intending to remortgage your Sunbury property.

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

Irrespective of whether you are a tenant or a landlord in Sunbury,the lease extension lawyers that we work with will always be happy 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 Case Summaries:

Alexander, Sunbury, Surrey

In 2014 Alexander, came perilously close to the 80-year mark with the lease on his one bedroom apartment in Sunbury. In buying his home 18 years previously, the lease term was of no importance. Luckily, he recognised he needed to take steps soon on Extending the lease. Alexander arranged for a lease extension just ahead of time in March. Alexander and the landlord who owned the flat above in the end settled on a premium of £5,000 . If he not met the deadline, the premium would have increased by at least £950.

Sunbury case:

In 2013 we were called by Mr O Lewis who, having was assigned a lease of a ground floor apartment in Sunbury in August 2010. The dilemma was if we could estimate the premium could be for a ninety year lease extension. Similar residencies in Sunbury with a long lease were worth £218,000. The average amount of ground rent was £45 collected per annum. The lease ran out in 2089. Considering the 63 years left we approximated the compensation to the freeholder to extend the lease to be between £17,100 and £19,800 exclusive of expenses.