Why you should start your Hale End lease extension

Top reasons for lease extension now:

A Hale End lease depreciates with the years remaining on the lease.

Hale End leases on domestic deteriorating in value. Where your lease has approximately ninety years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease falls below this level then you begin incurring an additional element called marriage value. Flat owners in Hale End will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancer to confirm your eligibility. In some circumstances you may not be entitled. There are also strict timetables and procedures to comply with once the process is triggered so it’s sensible to be guided by a conveyancer during the process.

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

Leasehold properties in Hale End with over 100 years unexpired on the lease are sometimes regarded as a ‘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 to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.

Lending institutions will not finance a property on a short lease

The definition of a short lease depends on the specific mortgage company, yet mortgage lenders start to become concerned at around 75 years. This will cause difficulties once you need to sell or refinance your property as it will be effectively unmortgageable. Even though you might have no immediate intention to sell but when you do your buyer must wait a couple of years before being able to exercise the right to a a lease extension.

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

The conveyancers that we work with procure Hale End 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 lawyer we work with provide it.

Hale End Lease Extension Case Summaries:

Ethan, Hale End, North East London

Twenty four months ago Ethan, came perilously close to the 80-year mark with the lease on his two bedroom flat in Hale End. In buying his home two decades ago, the lease term was of minimal significance. Fortunately, it dawned on him that he needed to take action soon on Extending the lease. Ethan arranged for a lease extension just in the nick of time last July. Ethan and the freeholder via the managing agents subsequently agreed on the final figure of £5,000 . If he not met the deadline, the price would have escalated by at least £850.

Hale End case:

Last Autumn we were contacted by Mr and Mrs. I Wood , who acquired a ground floor flat in Hale End in November 2003. We are asked if we could estimate the price could be to extend the lease by a further 90 years. Identical properties in Hale End with 100 year plus lease were worth £265,200. The mid-range ground rent payable was £65 billed per annum. The lease lapsed on 20 July 2092. Having 66 years unexpired we calculated the premium to the landlord for the lease extension to be between £15,200 and £17,600 exclusive of fees.

Hale End case:

Last Winter we were called by Dr H Alexander , who moved into a ground floor apartment in Hale End in January 1998. We are asked if we could approximate the premium could be for a 90 year lease extension. Similar properties in Hale End with a long lease were valued about £198,800. The mid-range amount of ground rent was £55 invoiced quarterly. The lease expiry date was in 2081. Given that there were 55 years remaining we estimated the premium to the landlord to extend the lease to be within £33,300 and £38,400 plus professional charges.