Top reasons for Hadleigh lease extension

Top reasons for lease extension now:

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

Hadleigh leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Hadleigh enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Hadleigh you would be well advised to see if your lease has between 70 and 90 years left. There are compelling reasons why a Hadleigh flat owner with a lease having around 80 years unexpired should take action to ensure that a lease extension is actioned without delay

An extended lease has roughly the same value as a freehold

Leasehold residencies in Hadleigh with in excess of 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.

Lenders may decide not to issue a mortgage on a short lease

Lending institutions have specific criteria when loaning monies charged on leasehold homes. Some will simply refrain from lending at all once the residual lease term goes beneath a certain unexpired lease term. Many Banks and Building Societies will not consider property with an unexpired term of less than seventy years suitable security. In addition to impacting your ability to sell, it is also relevant if you are intending to refinance your Hadleigh property.

What makes us experts in Hadleigh lease extensions?

Lease extensions in Hadleigh can be a difficult process. We recommend you get guidance from a conveyancer and valuer well versed in the legislation and lease extension process.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Hadleigh lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Hadleigh Lease Extension Example Cases:

Kai, Hadleigh, Suffolk

Twenty four months ago Kai, came seriously close to the eighty-year mark with the lease on his garden flat in Hadleigh. In buying his home 18 years ago, the lease term was of little concern. Luckily, he became aware that he would soon be paying an inflated amount for Extending the lease. Kai arranged for a lease extension just under the wire last April. Kai and the freeholder eventually agreed on the final figure of £5,500 . If the lease had slid lower than 80 years, the amount would have escalated by at least £1,075.

Hadleigh case:

Last Summer we were called by Dr Dylan Torres , who acquired a first floor apartment in Hadleigh in March 2011. We are asked if we could estimate the premium would likely be to extend the lease by 90 years. Comparable flats in Hadleigh with an extended lease were worth £205,000. The average ground rent payable was £50 collected quarterly. The lease expired on 1 April 2105. Taking into account 79 years unexpired we calculated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 not including fees.

Hadleigh case:

Dr Y Mercier purchased a purpose-built flat in Hadleigh in May 2010. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Similar homes in Hadleigh with an extended lease were valued about £275,000. The mid-range ground rent payable was £65 collected yearly. The lease lapsed in 2094. Given that there were 68 years unexpired we approximated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 not including professional charges.