Top reasons for Hanwell lease extension

Main reasons to commence your Hanwell lease extension today:

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

It’s an underpublicised certainty that a Hanwell residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Hanwell property prices.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If lease term slips below eighty years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most flat owners in Hanwell will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.

Lending institutions may decide not to lend with a short lease

The propensity since the credit crunch has been for mortgage companies to tighten lending requirements across the board - this has extended to the property over which the home loan is to be charged. This has meant the minimum number of years remaining under the lease required by banks has increased. Historically banks would grant a mortgage on a lease with 25 years plus the term of the loan - routinely fifty year leases but those requirements evolved by the requirement for longer and longer leases - many use a minimum term of 75 years as a prerequisite.

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

Irrespective of whether you are a tenant or a landlord in Hanwell,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hanwell valuers.

Hanwell Lease Extension Example Cases:

Andrew, Hanwell, West London

Last year Andrew, came precariously close to the 80-year threshold with the lease on his leasehold flat in Hanwell. Having purchased his property two decades ago, the lease term was of minimal concern. by good luck, it dawned on him that he needed to take steps soon on a lease extension. Andrew was able to extend his lease just in the nick of time last September. Andrew and the freeholder via the managing agents ultimately settled on an amount of £6,000 . If he had missed the deadline, the price would have become more exhorbitant by at least £900.

Hanwell case:

Dr Noah Pérez acquired a one bedroom flat in Hanwell in November 1999. We are asked if we could estimate the price would likely be for a 90 year extension to my lease. Comparable flats in Hanwell with a long lease were valued around £254,200. The average amount of ground rent was £60 invoiced every twelve months. The lease finished in 2077. Having 51 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £43,700 and £50,600 exclusive of legals.