Main reasons to commence your Hedon lease extension

Top reasons for lease extension now:

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

Hedon leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. It is the case that most Hedon tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Hedon you should check if your lease has between 70 and ninety years remaining. There are good reasons why a Hedon flat owner with a lease having around 80 years unexpired should take steps to make sure that a lease extension is actioned without delay

An extended lease has roughly the same value as a freehold

Leasehold residencies in Hedon with over 100 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 home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.

Mortgage lenders may decide not to finance a property on a short lease

Whether or not the lease is be regarded as a short lease depends on the specific mortgage company, yet lending institutions start to become nervous at around 75 years. This may be problematic once you come to dispose of or refinance your flat as it will be practically unmortgageable. You might have no imminent plan to sell but when you do your purchaser must hold off for a couple of years before they can exercise the right to a a lease extension.

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

Engaging our service gives you enhanced control over the value of your Hedon leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Hedon Lease Extension Case Summaries:

Henry, Hedon, East Yorkshire,

Henry owned a studio apartment in Hedon being sold with a lease of a few days over 61 years remaining. Henry informally spoke with his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Henry to invoke his statutory right. Henry obtained expert advice and was able to make an informed decision and handle with the matter and sell the flat.

Hedon case:

Dr B Baker owned a first floor apartment in Hedon in September 2005. We are asked if we could approximate the price would be for a ninety year extension to my lease. Comparative properties in Hedon with a long lease were worth £174,200. The average amount of ground rent was £55 invoiced quarterly. The lease finished in 2077. Taking into account 51 years left we approximated the premium to the landlord to extend the lease to be between £31,400 and £36,200 not including costs.

Hedon case:

Mr Aiden François purchased a one bedroom flat in Hedon in June 1999. We are asked if we could approximate the premium would likely be for a 90 year extension to my lease. Similar flats in Hedon with a long lease were valued around £285,000. The average ground rent payable was £45 billed per annum. The lease lapsed on 5 April 2097. Considering the 71 years left we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 plus professional charges.