Top reasons for Purley lease extension

Why you should commence your Purley lease extension today:

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

With a domestic leasehold property in Purley, you are actually purchasing a right to reside in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are fewer than 80 years remaining. Residents in Purley with a lease drawing near to 81 years unexpired should seriously think of extending it sooner rather than later. Once a lease has under 80 years left, under the relevant statute the freeholder can calculate and charge a greater amount, assessed on a technical multiplication, strangely termed as “marriage value” which is due.

An extended lease is almost the same value as a freehold

It is generally accepted that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.

Lenders may not lend on a short lease

Banks and building societies are inclined not lend on short residential leases. You most probably encounter difficulties if you need to sell your flat in Purley if the remaining lease term is below the criteria set by most mortgage companies. Different mortgage companies have different criteria but generally they are looking for a minimum remaining lease term of seventy years.

What makes us experts in Purley lease extensions?

Using our service will provide you increased control over the value of your Purley leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Purley Lease Extension Case Summaries:

Leon, Purley, South London

In 2014 Leon, came seriously near to the 80-year threshold with the lease on his basement apartment in Purley. Having bought his flat two decades ago, the length of the lease was of little concern. Luckily, he recognised he needed to take action soon on a lease extension. Leon was able to extend his lease just ahead of time in September. Leon and the landlord who owned the flat above eventually agreed on a premium of £5,500 . If he not met the deadline, the premium would have gone up by at least £950.

Purley case:

Mr and Mrs. W Evans purchased a ground floor apartment in Purley in January 2002. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by 90 years. Comparative residencies in Purley with 100 year plus lease were in the region of £275,000. The mid-range amount of ground rent was £55 billed annually. The lease terminated on 12 February 2103. Given that there were 77 years unexpired we estimated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of expenses.