Top reasons for Hackbridge lease extension

Top reasons for lease extension now:

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

Hackbridge leases on residential deteriorating in value. if your lease has about ninety years remaining, you should start thinking about 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 usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Hackbridge will mostly qualify for a lease extension; however a solicitor should be able check if you qualify. In some circumstances you may not qualify. There are also strict timetables and steps to comply with once the process has commenced so it’s sensible to be guided by a lawyer during the process.

An extended lease is almost the same value as a freehold

It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.

Mortgage lenders may not grant a mortgage on a short lease

The trend since 2008 has been for lenders to tighten lending criteria generally - this has extended to the types of security over which the mortgage is to be charged. This has meant the minimum number of years remaining under the lease required by mortgage companies has increased. Historically lenders would lend on a lease with twenty years plus the term of the loan - typically fifty year leases but those requirements have been chipped away by the requirement for longer and longer leases - many use a minimum term of 75 years as standard.

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

Irrespective of whether you are a tenant or a freeholder in Hackbridge,the lease extension solicitors 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 Hackbridge valuers.

Hackbridge Lease Extension Case Studies:

David, Hackbridge, Surrey

During the course of the last few months David, came seriously near to the eighty-year threshold with the lease on his first floor flat in Hackbridge. In buying his flat two decades ago, the unexpired term was of minimal bearing. Thankfully, he became aware that he would soon be paying an escalated premium for Extending the lease. David arranged for a lease extension at the eleventh hour in September. David and the freeholder via the management company subsequently settled on a premium of £5,500 . If he failed to meet the deadline, the premium would have become more exhorbitant by at least £850.

Hackbridge case:

Last Christmas we were e-mailed by Mr and Mrs. C Thomas , who took over the lease of a studio apartment in Hackbridge in January 2012. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by 90 years. Comparative flats in Hackbridge with an extended lease were valued about £191,400. The mid-range amount of ground rent was £55 collected quarterly. The lease expired in 2080. Considering the 54 years as a residual term we estimated the premium to the landlord to extend the lease to be within £34,200 and £39,600 exclusive of professional charges.