Main reasons to commence your Hungerford lease extension

Top reasons for lease extension now:

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

On the balance of probabilities if you own a flat in Hungerford you actually own a long leasehold interest over your property

An extended lease has roughly the same value as a freehold

Leasehold residencies in Hungerford with more than 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.

Lending institutions may decide not to issue a mortgage on a short lease

Mortgage companies are really restricting their approach as regards to properties in Hungerford with short leases. For instance you might discover 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 if you wanted to sell, your only options would be to find a cash buyer, or hope for the best at auction thus limiting your market.

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

Engaging our service gives you better control over the value of your Hungerford leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Hungerford Lease Extension Case Summaries:

Thomas, Hungerford, Berkshire

In 2014 Thomas, started to get near to the eighty-year threshold with the lease on his ground floor flat in Hungerford. In buying his flat two decades ago, the lease term was of little concern. Thankfully, he recognised he needed to take action soon on Extending the lease. Thomas extended the lease just in the nick of time in January. Thomas and the landlord who owned the flat above eventually settled on sum of £5,000 . If he not met the deadline, the sum would have become more costly by at least £1,075.

Hungerford case:

Dr V Evans completed a first floor flat in Hungerford in April 2007. The question was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Similar flats in Hungerford with 100 year plus lease were valued about £216,000. The average ground rent payable was £60 invoiced quarterly. The lease elapsed in 2084. Having 58 years remaining we calculated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 not including fees.

Hungerford case:

Last Autumn we were contacted by Dr Mia Green , who owned a one bedroom apartment in Hungerford in May 1999. The dilemma was if we could shed any light on how much (roughly) premium could be to prolong the lease by 90 years. Comparative properties in Hungerford with 100 year plus lease were in the region of £205,000. The mid-range amount of ground rent was £50 invoiced annually. The lease finished in 2104. Having 78 years remaining we approximated the premium to the freeholder to extend the lease to be between £7,600 and £8,800 not including professional charges.