Why you should commence your Purley lease extension

Main reasons to start your Purley lease extension today:

Increase your lease and increase your Purley property value

The value of Purley leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase materialy once the remaining term is less than eighty years

Purley property with a lease extension has roughly the same value as a freehold

It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the residence will be equivalent in value to a freehold for many years in the future.

Mortgage lenders may decide not to loan monies with a short lease

Banks and building societies are really clamping down as regards to properties in Purley with short leases. For example you might discover that their lending criteria are stricter and that they adjust interest rates depending on how many years are left on the lease. Some may even refuse to lend completely, so if you wanted to sell, your remaining options would be to find a cash purchaser, or try your luck at auction thus reducing your market.

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

The lawyers that we work with procure 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 lawyer we work with provide it.

Purley Lease Extension Example Cases:

Isabella, Purley, South London,

In the wake of 6 months of protracted negotiations with the freeholder of her purpose-built flat in Purley, Isabella initiated the lease extension process just as the lease was approaching the all-important eighty-year mark. The transaction was finalised in July 2013. The freeholder’s costs were restricted to less than 450 pounds.

Purley case:

Last Spring we were phoned by Mr and Mrs. E Murphy , who acquired a studio flat in Purley in September 1995. The dilemma was if we could estimate the premium could be to prolong the lease by ninety years. Comparable premises in Purley with 100 year plus lease were worth £186,000. The average amount of ground rent was £65 collected yearly. The lease elapsed in 2084. Considering the 58 years outstanding we approximated the premium to the landlord for the lease extension to be between £24,700 and £28,600 plus fees.