Top reasons for Surbiton lease extension

Main reasons to commence your Surbiton lease extension today:

A Surbiton leasehold property depreciates with the years remaining on the lease.

With a domestic leasehold premises in Surbiton, you are in fact renting it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive particularly once there are fewer than eighty years left. Anyone in Surbiton with a lease nearing 81 years left should seriously think of extending it as soon as possible. When the lease term has below eighty years left, under the relevant legislation the landlord is entitled to calculate and demand a greater premium, assessed on a technical computation, known as “marriage value” which is payable.

Surbiton property with a lease extension is almost the same value as a freehold

It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the premises will be worth the same as a freehold for many years ahead.

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

Many banks and building societies will be unwilling to lend on a lease with under 70 years remaining - although this varies from lender to lender. A buyer will no doubt encounter difficulties in obtaining a mortgage and this could result in your Surbiton property being difficult to sell or to obtain finance on.

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

The conveyancers that we work with handle Surbiton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.

Surbiton Lease Extension Case Studies:

Nicole, Surbiton, South West London,

Following protracted negotiations with the freeholder of her first floor flat in Surbiton, Nicole initiated the lease extension process just as the lease was coming close to the all-important 80-year deadline. The lease extension was finalised in January 2009. The landlord’s charges were kept to an absolute minimum.

Surbiton case:

Last Summer we were called by Dr R Turner , who moved into a basement apartment in Surbiton in January 2007. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Similar residencies in Surbiton with an extended lease were worth £166,800. The mid-range ground rent payable was £50 invoiced per annum. The lease lapsed on 17 August 2074. Given that there were 50 years remaining we calculated the premium to the freeholder to extend the lease to be within £32,300 and £37,400 exclusive of costs.