Why you should commence your Hawkshead lease extension

Top reasons for lease extension now:

Increase your lease and increase your Hawkshead property value

With a long leasehold property in Hawkshead, you are actually purchasing a right to live in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater notably when there are less than eighty years left. Anyone in Hawkshead with a lease drawing near to 81 years left should seriously think of extending it as soon as possible. When the lease term has under eighty years outstanding, under the current statute the landlord can calculate and levy a greater amount, assessed on a technical computation, known as “marriage value” which is payable.

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

Leasehold properties in Hawkshead with more than one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.

Lenders may decide not to issue a mortgage on a short lease

Lenders are really restricting their approach as regards to homes in Hawkshead with short leases. For instance you might discover that their lending criteria are stricter and that they adjust interest rates depending on the unexpired lease term. Some may even refuse to lend completely, so if you wanted to sell, your remaining options would be to find a cash buyer, or hope for the best at auction thus limiting the number of prospective buyers.

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

Retaining our service gives you increased control over the value of your Hawkshead leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Hawkshead Lease Extension Case Summaries:

Rachael, Hawkshead, Cumbria,

After lengthy negotiations with the freeholder of her two bedroom apartment in Hawkshead, Rachael commenced the lease extension process as the 80 year threshold was swiftly advancing. The legal work was finalised in August 2012. The landlord’s costs were kept to an absolute minimum.

Hawkshead case:

Ms Ellen Jackson purchased a ground floor flat in Hawkshead in September 1999. We are asked if we could estimate the premium could be to extend the lease by a further 90 years. Comparative homes in Hawkshead with a long lease were valued about £255,000. The average ground rent payable was £50 invoiced quarterly. The lease terminated in 2097. Having 71 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including legals.

Hawkshead case:

Last year we were approach by Mr Toby Dupont , who moved into a basement flat in Hawkshead in November 1997. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by an additional years. Comparable flats in Hawkshead with 100 year plus lease were in the region of £254,200. The average amount of ground rent was £60 collected every twelve months. The lease elapsed on 25 August 2077. Considering the 51 years unexpired we approximated the premium to the freeholder to extend the lease to be within £43,700 and £50,600 exclusive of expenses.