Top reasons for Hungerford lease extension

Top reasons for lease extension now:

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

Hungerford leases on domestic deteriorating in value. Where your lease has in the region of 90 years remaining, you should start considering the need for a lease extension. If lease term dips under 80 years, you will then have to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Hungerford will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancer to check if you qualify. In certain circumstances you may not be entitled. There are prescribed timetables and steps to comply with once the process is triggered so it’s sensible to be guided by a lawyer during the process.

An extended lease is almost the same value as a freehold

Leasehold premises in Hungerford with more than 100 years outstanding 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 upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.

Banks and Building Societies may not finance a property on a short lease

Nearly all banks and building societies will not grant a mortgage on a lease with less than 70 years left to run - although this varies from lender to lender. A purchaser will undoubtedly encounter difficulties in obtaining a mortgage and this could result in your Hungerford property becoming difficult to dispose of or to obtain finance on.

What makes us experts in Hungerford lease extensions?

Regardless of whether you are a tenant or a landlord in Hungerford,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Hungerford valuers.

Hungerford Lease Extension Case Studies:

Ryan, Hungerford, Berkshire,

Ryan owned a 2 bedroom flat in Hungerford on the market with a lease of a few days over 61 years outstanding. Ryan on an informal basis spoke with his freeholder a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £100 yearly. No ground rent would be payable on a lease extension were Ryan to invoke his statutory right. Ryan obtained expert legal guidance and secured satisfactory deal informally and readily saleable.

Hungerford case:

Mrs P Lewis acquired a one bedroom flat in Hungerford in October 1997. The question was if we could approximate the price could be for a 90 year extension to my lease. Comparable flats in Hungerford with a long lease were worth £280,000. The mid-range amount of ground rent was £45 billed monthly. The lease elapsed on 28 June 2096. Taking into account 70 years left we estimated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 plus professional charges.

Hungerford case:

Last month we were approach by Mrs Imogen Leroy , who owned a purpose-built apartment in Hungerford in February 1997. The question was if we could estimate the price could be to extend the lease by ninety years. Similar flats in Hungerford with a long lease were in the region of £225,800. The mid-range ground rent payable was £60 billed every twelve months. The lease expired in 2086. Having 60 years as a residual term we approximated the premium to the landlord to extend the lease to be within £25,700 and £29,600 not including legals.