Top reasons for Eastleigh lease extension

Why you should start your Eastleigh lease extension today:

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

The basic rule is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Eastleigh may extend the lease for a further 90 years under the 1993 Leasehold Reform Act. Do give careful consideration before delaying your Eastleigh lease extension. Shelving that expense today simply increases the premium you will ultimately have to pay for a lease extension.

An extended lease has roughly the same value as a freehold

Leasehold premises in Eastleigh with over one hundred years unexpired 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 upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.

Banks and Building Societies may not loan monies on a short lease

The propensity since the credit crunch has been for banks to tighten lending criteria across the board - this has extended to the property over which the mortgage is to be charged. This has meant the unexpired lease term required by banks has increased. In the past banks would grant a mortgage on a lease with twenty years plus the term of the loan - routinely fifty year leases but those requirements evolved by the requirement for longer and longer leases - many use a minimum term of 75 years as a prerequisite.

What makes us experts in Eastleigh lease extensions?

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

Eastleigh Lease Extension Example Cases:

Connor, Eastleigh, Hampshire

Last Spring Connor, came dangerously near to the 80-year mark with the lease on his purpose- built apartment in Eastleigh. In buying his flat two decades ago, the lease term was of no relevance. by good luck, he realised he would soon be paying an inflated amount for a lease extension. Connor extended the lease just under the wire last August. Connor and the freeholder via the managing agents ultimately settled on a premium of £6,000 . If he had missed the deadline, the premium would have gone up by a minimum £950.

Eastleigh case:

Mrs N Brooks completed a purpose-built flat in Eastleigh in March 1996. 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 properties in Eastleigh with an extended lease were in the region of £233,200. The mid-range ground rent payable was £60 invoiced every twelve months. The lease terminated in 2087. Taking into account 61 years remaining we estimated the compensation to the freeholder to extend the lease to be between £22,800 and £26,400 exclusive of legals.

Eastleigh case:

In 2011 we were contacted by Dr U Bonnet who, having moved into a basement apartment in Eastleigh in February 2008. The dilemma was if we could estimate the premium would likely be to prolong the lease by a further 90 years. Similar premises in Eastleigh with a long lease were valued about £171,800. The mid-range ground rent payable was £55 collected per annum. The lease expired in 2076. Considering the 50 years outstanding we approximated the premium to the freeholder for the lease extension to be within £32,300 and £37,400 not including professional charges.