Top reasons for Haggerston lease extension

Main reasons to start your Haggerston lease extension today:

Increase your lease and increase your Haggerston property value

The re-sale value of a leasehold property in Haggerston is impacted by how many years the lease has left to run. If it is near to or fewer than eighty years you should envisage problems on re-sale, so it is recommended to arrange for the lease to be extended ahead of purchasing. It is preferable to start the process of extending the lease is when a lease still has 82 years remaining so that formalities can be concluded in advance of the eighty year mark. Current legislation enables Haggerston qualifying lessees to obtain a lease extension of ninety years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The purpose of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.

An extended lease has roughly the same value as a freehold

It is generally considered that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for many years in the future.

Lenders may not finance a property on a short lease

Most banks and building societies insist on a lengthy amount of time remaining on a leasehold property before they will consider providing a mortgage on it. Regardless of whether you require a mortgage, you should be mindful that it is reasonable to assume that someone wishing to buy your property in the future might well do, so in the event that they are unable to get a mortgage, then the value of the property could be adversely impacted. Since 2008 most mortgage lenders have increased the required minimum lease length that they are prepared to lend on

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

The conveyancers that we work with procure Haggerston lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.

Haggerston Lease Extension Case Studies:

Samuel, Haggerston, London,

Samuel owned a 2 bedroom apartment in Haggerston on the market with a lease of a little over sixty years remaining. Samuel informally contacted his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Samuel to exercise his statutory right. Samuel procured expert advice and was able to make a more informed judgement and deal with the matter and readily saleable.

Haggerston case:

Mr and Mrs. T Pérez moved into a studio flat in Haggerston in September 1998. The dilemma was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Comparable premises in Haggerston with 100 year plus lease were valued about £205,000. The average ground rent payable was £50 invoiced per annum. The lease ended in 2105. Taking into account 79 years remaining we calculated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 plus costs.