Top reasons for Purley lease extension

Top reasons for lease extension now:

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

Purley leases on domestic deteriorating in value. if your lease has in the region of 90 years remaining, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease drops below this level then you begin paying an additional element called marriage value. Leasehold owners in Purley will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to check if you qualify. In some cases you may not qualify. There are also strict timetables and steps to comply with once the process has started so it’s prudent to be guided by a conveyancing solicitor during the process.

An extended lease has roughly the same value as a freehold

Leasehold premises in Purley with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.

Lending institutions will not lend with a short lease

Almost all banks and building societies will be unwilling to grant a mortgage on a lease with under seventy years unexpired - although this varies between mortgage companies. A purchaser will likely encounter difficulties to obtain a mortgage and this will result in your Purley property being difficult to dispose of or to obtain finance on.

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

Engaging our service gives you enhanced control over the value of your Purley leasehold, as your property will be more valuable and saleable in terms of lease length should you decide 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 Example Cases:

Katherine, Purley, South London,

Subsequent to protracted discussions with the freeholder of her garden apartment in Purley, Katherine started the lease extension process just as the lease was approaching the all-important 80-year mark. The transaction completed in June 2010. The landlord’s costs were negotiated to slightly above 650 pounds.

Purley case:

Mrs I Martínez purchased a basement apartment in Purley in March 1999. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by ninety years. Identical residencies in Purley with an extended lease were in the region of £210,600. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease ran out on 22 May 2088. Having 62 years unexpired we approximated the premium to the freeholder for the lease extension to be within £18,100 and £20,800 plus expenses.