Top reasons for Histon lease extension

Why you should commence your Histon lease extension today:

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

Histon leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Histon enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Histon you really ought to investigate if your lease has between 70 and ninety years remaining. There are compelling reasons why a Histon leaseholder with a lease having around 80 years unexpired should take action to ensure that a lease extension is effected without delay

An extended lease has roughly the same value as a freehold

Leasehold properties in Histon with more than one hundred years remaining 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 upside in purchasing the freehold unless savings on ground rent and service charges justify it.

Banks and Building Societies will not grant a mortgage with a short lease

Mortgage companies are really restricting their approach as regards to properties in Histon with short leases. For instance you may find that their lending criteria are stricter and that they alter interest rates depending on the unexpired lease term. Some may even refuse to lend completely, so where you wanted to sell, your remaining options would be to find a cash purchaser, or hope for the best at auction thus restricting the number of prospective buyers.

What makes us experts in Histon lease extensions?

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

Histon Lease Extension Case Studies:

Michael, Histon, Cambridgeshire

Two years ago Michael, started to get close to the 80-year threshold with the lease on his leasehold apartment in Histon. In buying his property two decades ago, the unexpired term was of minimal importance. As luck would have it, he recognised he would soon be paying way over the odds for Extending the lease. Michael arranged for a lease extension just under the wire in May. Michael and the landlord ultimately settled on sum of £5,500 . If the lease had gone below 80 years, the price would have escalated by at least £1,050.

Histon case:

Mr and Mrs. H Harris took over the lease of a recently refurbished flat in Histon in November 2012. We are asked if we could estimate the price would likely be to prolong the lease by ninety years. Similar homes in Histon with 100 year plus lease were in the region of £260,000. The mid-range ground rent payable was £50 invoiced annually. The lease ended in 2097. Given that there were 71 years remaining we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of legals.

Histon case:

In 2014 we were approached by Mr and Mrs. H Reed who, having took over the lease of a purpose-built flat in Histon in August 2010. The question was if we could approximate the premium could be to prolong the lease by an additional years. Identical homes in Histon with a long lease were worth £254,200. The average amount of ground rent was £60 collected monthly. The lease ran out on 28 July 2077. Considering the 51 years left we approximated the premium to the freeholder to extend the lease to be between £43,700 and £50,600 not including legals.