Why you should commence your Hale End lease extension

Top reasons for lease extension now:

Increase your lease and increase your Hale End property value

Hale End leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Hale End residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Hale End you must see if your lease has between 70 and ninety years remaining. There are good reasons why a Hale End leaseholder with a lease having around eighty years left should take action to make sure that a lease extension is put in place without delay

Hale End property with a lease extension has roughly the same value as a freehold

Leasehold properties in Hale End with more than 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.

Lenders may decide not to loan monies on a short lease

Mortgage lenders have specific criteria when loaning funds charged on leasehold property. Some will simply refrain from lending at all once an unexpired lease term drops beneath a specified unexpired lease term. Many Mortgage lenders will not regard property with an unexpired below seventy years as adequate security. As well as impacting your ability to sell, it is also relevant if you are intending to refinance your Hale End property.

Why use us for your lease extension in Hale End?

Using our service gives you enhanced control over the value of your Hale End leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Hale End Lease Extension Example Cases:

Riley, Hale End, North East London

In 2014 Riley, started to get close to the eighty-year threshold with the lease on his two bedroom apartment in Hale End. Having purchased his flat two decades ago, the length of the lease was of no interest. Fortunately, he realised he would imminently be paying an inflated amount for Extending the lease. Riley was able to extend his lease just under the wire in August. Riley and the landlord subsequently settled on the final figure of £5,500 . If the lease had fallen to less than eighty years, the premium would have increased by a minimum £1,125.

Hale End case:

In 2013 we were called by Mrs Kirsty Bennett who, having acquired a basement apartment in Hale End in June 1997. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Similar properties in Hale End with 100 year plus lease were in the region of £200,000. The average ground rent payable was £50 billed annually. The lease ended on 26 June 2103. Taking into account 77 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of costs.

Hale End case:

Last Summer we were contacted by Dr M Fournier , who moved into a basement flat in Hale End in August 2007. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Comparable properties in Hale End with a long lease were valued about £265,200. The mid-range ground rent payable was £65 billed yearly. The lease elapsed in 2092. Given that there were 66 years remaining we calculated the compensation to the landlord for the lease extension to be within £15,200 and £17,600 exclusive of professional charges.