Why you should start your Purley lease extension

Top reasons for lease extension now:

Increase your lease and increase your Purley property value

Owning a flat usually means owning a lease of the property, which has a set term of years. The lease will usually be granted for a fixed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Purley. Inevitably, the period of lease left shortens as time goes by. This may slip by relatively unnoticed when the flat or house has to be disposed of or refinanced. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Eligible leaseholders in Purley have the right to extend the lease for an additional ninety years under Leasehold Reform legislation. Please give careful consideration before putting off your Purley lease extension. Putting off that expense now simply increases the price you will eventually have to pay to extend your lease

An extended lease has roughly the same value as a freehold

Leasehold residencies in Purley with in excess of 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.

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

Mortgage companies are tightening their criteria and a meaningful number now require flats to have at least sixty if not seventy years left at the expiry of the mortgage. Given that many flats in Purley were created in the 1950s, 1960s and 1970s this means many now require lease extensions if they if they are to be mortgageable.

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

The conveyancing solicitors that we work with undertake Purley 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.

Purley Lease Extension Example Cases:

Tommy, Purley, South London

Two years ago Tommy, came seriously near to the eighty-year mark with the lease on his leasehold flat in Purley. In buying his property 19 years previously, the length of the lease was of minimal importance. by good luck, he realised he needed to take steps soon on a lease extension. Tommy extended the lease at the eleventh hour in May. Tommy and the freeholder eventually agreed on the final figure of £6,000 . If the lease had descended below 80 years, the figure would have gone up by at least £1,075.

Purley case:

In 2014 we were called by Ms L Girard who, having bought a ground floor flat in Purley in August 2005. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Identical properties in Purley with a long lease were valued about £250,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease concluded on 23 May 2095. Considering the 69 years as a residual term we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus legals.