Why you should start your Hurst Green lease extension

Main reasons to start your Hurst Green lease extension today:

A Hurst Green leasehold property depreciates with the years remaining on the lease.

The re-sale value of a leasehold property in Hurst Green is impacted by how many years the lease has remaining. If it is close to or fewer than eighty years you should expect problems on re-sale, so it is advisable to arrange for a lease extension ahead of buying. It is preferable to start the process of extending the lease is when a lease still has 82 years to run so that a lease extension can be concluded prior to the eighty year threshold. Statute enables Hurst Green qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus a further term of 90 years. The purpose of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.

An extended lease is almost the same value as a freehold

It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.

Lenders will not finance a property on a short lease

Mortgage companies are tightening their criteria and a meaningful number now require flats to have a minimum of 60 if not 70 years left at the expiry of the mortgage. Given that many flats in Hurst Green were built in the fifties, sixties and seventies this means many now need to be extended if they wish to obtain a mortgage.

What makes us experts in Hurst Green lease extensions?

Engaging our service gives you enhanced control over the value of your Hurst Green leasehold, as your property will be more valuable and marketable 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.

Hurst Green Lease Extension Case Summaries:

Sam, Hurst Green, East Sussex,

Sam owned a 2 bedroom flat in Hurst Green being marketed with a lease of a few days over 59 years unexpired. Sam informally contacted his freeholder a well known local-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Sam to exercise his statutory right. Sam obtained expert legal guidance and was able to make an informed judgement and deal with the matter and readily saleable.

Hurst Green case:

Mrs Charlotte Williams moved into a basement flat in Hurst Green in April 2010. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Comparative flats in Hurst Green with 100 year plus lease were in the region of £206,200. The average ground rent payable was £60 collected every twelve months. The lease came to a finish in 2082. Given that there were 56 years left we approximated the premium to the landlord to extend the lease to be between £32,300 and £37,400 not including legals.

Hurst Green case:

In 2011 we were phoned by Mr and Mrs. G Walker who, having purchased a first floor flat in Hurst Green in September 2009. The question was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparative residencies in Hurst Green with 100 year plus lease were worth £300,000. The average amount of ground rent was £50 collected yearly. The lease end date was on 5 January 2102. Considering the 76 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 not including costs.