Why you should commence your Hedon lease extension

Top reasons for lease extension now:

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

The value of Hedon leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase materialy once the remaining term is below than eighty years

An extended lease has roughly the same value as a freehold

Leasehold properties in Hedon with more than 100 years left on the lease are often referred to as ‘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 reversionary interest unless savings on ground rent and maintenance charges merit it.

Mortgage lenders will not grant a mortgage on a short lease

The trend since the credit crunch has been for banks to tighten lending requirements across the board - this has extended to the property over which the mortgage is to be charged. This has meant the minimum number of years remaining under the lease required by lenders has increased. Historically banks were content with 25 years plus the term of the loan - typically fifty year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many now have a minimum term of 75 years as a prerequisite.

What makes us experts in Hedon lease extensions?

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

Hedon Lease Extension Case Summaries:

Ibrahim, Hedon, East Yorkshire,

Ibrahim was the the leasehold owner of a high value flat in Hedon being sold with a lease of a few days over sixty years remaining. Ibrahim on an informal basis approached his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £50 per annum. No ground rent would be due on a lease extension were Ibrahim to invoke his statutory right. Ibrahim procured expert legal guidance and was able to make a more informed decision and deal with the matter and readily saleable.

Hedon case:

In 2014 we were contacted by Mr and Mrs. P Clark who, having took over the lease of a basement apartment in Hedon in June 2005. We are asked if we could shed any light on how much (approximately) price would likely be to extend the lease by ninety years. Comparative flats in Hedon with an extended lease were valued about £295,000. The average amount of ground rent was £45 collected every twelve months. The lease ended in 2100. Given that there were 74 years left we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of costs.

Hedon case:

In 2010 we were approached by Mr and Mrs. M Patel who, having completed a one bedroom apartment in Hedon in July 2006. The question was if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Identical residencies in Hedon with a long lease were worth £243,000. The average ground rent payable was £65 collected quarterly. The lease elapsed in 2089. Having 63 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £20,000 and £23,000 plus costs.