Main reasons to commence your Hale lease extension

Why you should start your Hale lease extension today:

A Hale leasehold property depreciates with the years remaining on the lease.

As the the remaining lease term of a Hale residential lease diminished so does its value and therefore the value of your property. If the residual term has, in excess of 99 years to run then this decrease may be fractional nevertheless there will become a stage when a lease has under than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main rational as to why you should consider extending sooner as opposed to later. Many flat owners in Hale will qualify for this right; nevertheless a conveyancing solicitor can advise if you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.

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

Leasehold premises in Hale with over 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 property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.

Mortgage lenders will not issue a mortgage with a short lease

The propensity since 2008 has been for lenders to tighten lending criteria across the board - this has extended to the types of security over which the mortgage is to be granted. This has meant the minimum number of years remaining under the lease required by lenders has increased. In the past banks were content with twenty years plus the term of the loan - routinely fifty year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many use a minimum term of 75 years as standard.

Why use us for your lease extension in Hale?

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

Hale Lease Extension Case Summaries:

Jodie, Hale, Greater Manchester,

Following lengthy correspondence with the landlord of her ground floor flat in Hale, Jodie commenced the lease extension process just as her lease was approaching the critical 80-year deadline. The legal work completed in May 2005. The freeholder’s charges were kept to an absolute minimum.

Hale case:

Last Christmas we were called by Mrs M Morgan , who completed a purpose-built flat in Hale in November 1999. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by an additional years. Comparable flats in Hale with an extended lease were valued around £223,400. The mid-range ground rent payable was £60 invoiced quarterly. The lease expiry date was on 12 October 2085. Taking into account 59 years remaining we calculated the premium to the freeholder to extend the lease to be within £27,600 and £31,800 plus costs.

Hale case:

In 2012 we were contacted by Mr and Mrs. F Davis who, having acquired a one bedroom flat in Hale in March 2001. We are asked if we could approximate the price would likely be for a 90 year lease extension. Comparative premises in Hale with an extended lease were worth £205,000. The mid-range amount of ground rent was £50 billed annually. The lease came to a finish in 2105. Taking into account 79 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including expenses.