Top reasons for Hadleigh lease extension

Top reasons for lease extension now:

Increase your lease and increase your Hadleigh property value

When it comes to long leasehold property in Hadleigh, you are in fact renting it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are fewer than eighty years left. Leasehold owners in Hadleigh with a lease approaching 81 years left should seriously consider extending it without delay. Once the lease term has under eighty years outstanding, under the relevant statute the landlord is entitled to calculate and charge a greater premium, based on a technical multiplication, strangely termed as “marriage value” which is payable.

Hadleigh property with a lease extension is almost the same value as a freehold

Leasehold properties in Hadleigh with more than 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.

Banks and Building Societies will not lend with a short lease

Nearly all banks and building societies will be unwilling to grant a mortgage on a lease with under seventy years remaining - although this varies from lender to lender. A buyer will undoubtedly encounter difficulties in obtaining a mortgage and this will result in your Hadleigh property being difficult to sell or remortgage.

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

Regardless of whether you are a tenant or a landlord in Hadleigh,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hadleigh valuers.

Hadleigh Lease Extension Case Summaries:

Michael, Hadleigh, Suffolk,

Michael owned a conversion apartment in Hadleigh being sold with a lease of a few days over 61 years left. Michael informally approached his landlord being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £50 per annum. Ordinarily, ground rent would not be payable on a lease extension were Michael to exercise his statutory right. Michael procured expert legal guidance and secured an acceptable resolution informally and readily saleable.

Hadleigh case:

Mrs M Reed acquired a studio apartment in Hadleigh in October 2007. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by an additional years. Comparable premises in Hadleigh with 100 year plus lease were valued about £267,600. The average amount of ground rent was £65 billed quarterly. The lease terminated on 10 March 2093. Having 67 years unexpired we calculated the premium to the freeholder for the lease extension to be between £14,300 and £16,400 exclusive of legals.

Hadleigh case:

Last April we were phoned by Dr Jessica Moore , who purchased a purpose-built flat in Hadleigh in May 2012. The question was if we could estimate the premium would likely be to extend the lease by 90 years. Identical homes in Hadleigh with an extended lease were in the region of £206,200. The mid-range ground rent payable was £55 invoiced every twelve months. The lease elapsed on 6 January 2082. Having 56 years outstanding we approximated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 not including legals.