Main reasons to commence your Hedon lease extension

Why you should commence your Hedon lease extension today:

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

Owning a apartment usually means owning a lease of the property, which has a finite term of years. This lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Hedon. Inevitably, the period of lease remaining reduces over time. This is often overlooked and only becomes a problem when the property needs to be disposed of or re-mortgaged. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Qualifying long lease owners in Hedon have the right to extend the lease for an additional ninety years in accordance with Leasehold Reform legislation. You should give due consideration before putting off your Hedon lease extension. Holding off that expense now only increases the price you will eventually incur to extend your lease

Hedon property with a lease extension is almost the same value as a freehold

Leasehold premises in Hedon with over one hundred years left on the lease are often regarded as a ‘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 purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.

Lenders will not grant a mortgage on a short lease

The definition of a short lease depends on the specific mortgage company, yet lending institutions start to get concerned at around 75 years. This may cause difficulties when you need to dispose of or refinance your flat as it will be effectively unmortgageable. Even though you might have no immediate plan to sell but when you do your buyer must hold off for 2 years before being able to exercise the right to a an extension to the lease.

What makes us experts in Hedon lease extensions?

Regardless of whether you are a tenant or a freeholder in Hedon,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 Hedon valuers.

Hedon Lease Extension Case Summaries:

Gabriel, Hedon, East Yorkshire

In 2014 Gabriel, came precariously close to the eighty-year threshold with the lease on his one bedroom flat in Hedon. Having purchased his flat 18 years previously, the unexpired term was of little importance. Luckily, he became aware that he would imminently be paying way over the odds for a lease extension. Gabriel was able to extend his lease just in the nick of time last June. Gabriel and the landlord who owned the flat above subsequently agreed on an amount of £6,000 . If he not met the deadline, the price would have increased by a minimum £1,125.

Hedon case:

Mr and Mrs. G García moved into a one bedroom apartment in Hedon in January 2003. We are asked if we could estimate the price would be to extend the lease by 90 years. Comparable flats in Hedon with 100 year plus lease were in the region of £205,000. The mid-range ground rent payable was £50 invoiced yearly. The lease concluded in 2104. Having 78 years left we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of expenses.

Hedon case:

In 2009 we were phoned by Mrs W Michel who, having moved into a ground floor flat in Hedon in June 2011. We are asked if we could shed any light on how much (roughly) price would likely be for a ninety year extension to my lease. Comparative flats in Hedon with a long lease were worth £267,600. The average ground rent payable was £65 collected quarterly. The lease ran out in 2093. Taking into account 67 years left we estimated the premium to the landlord for the lease extension to be between £14,300 and £16,400 exclusive of professional charges.