Top reasons for Purley lease extension

Top reasons for lease extension now:

Increase your lease and increase your Purley property value

For those whose Purley home is held on a long lease, our message is clear – if nothing is done, your property will ultimately revert to your landlord, leaving you empty-handed. The shorter the lease the less it is worth and the more expensive it will be to procure a lease extension.

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

Leasehold residencies in Purley with over one hundred years left on the lease are often 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 upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.

Mortgage lenders will not lend on a short lease

The trend since 2008 has been for banks to tighten lending criteria across the board - this has extended to the types of security over which the home loan is to be charged. This has meant the unexpired lease term required by lenders has increased. Historically banks were content with twenty years plus the term of the loan - typically 50 year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many use a minimum term of 75 years as standard.

What makes us experts in Purley lease extensions?

Irrespective of whether you are a tenant or a freeholder in Purley,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Purley valuers.

Purley Lease Extension Example Cases:

James, Purley, South London,

James owned a studio flat in Purley on the market with a lease of a few days over 61 years remaining. James on an informal basis spoke with his landlord being a well known local-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were James to invoke his statutory right. James procured expert legal guidance and was able to make a more informed judgement and handle with the matter and readily saleable.

Purley case:

Dr Ibrahim Phillips acquired a garden apartment in Purley in April 2004. We are asked if we could estimate the price would be for a 90 year extension to my lease. Similar flats in Purley with an extended lease were valued about £246,800. The average amount of ground rent was £60 collected every twelve months. The lease ended on 5 April 2076. Considering the 50 years outstanding we approximated the premium to the freeholder for the lease extension to be within £44,700 and £51,600 not including fees.