Why you should commence your Hampstead lease extension

Top reasons for lease extension now:

Increase your lease and increase your Hampstead property value

The re-sale value of a leasehold property in Hampstead depends on how many years the lease has left to run. If it is close to or less than eighty years you should anticipate problems on re-sale, so it is recommended to arrange for a lease extension ahead of buying. It is preferable to commence the lease extension process when a lease still has 82 years remaining so that all matters can be concluded well before the 80 year mark. Leasehold Reform legislation entitles Hampstead qualifying lessees to an additional term of ninety years in addition to the existing term, at a nominal rent (no ground rent). The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.

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

Leasehold residencies in Hampstead with in excess of 100 years left on the lease are often 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 purchasing the freehold unless savings on ground rent and estate charges merit it.

Lenders may 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 get jittery at around 75 years. This may be problematic once you need to dispose of or refinance your property as it will be effectively unmortgageable. You might have no imminent desire to sell but when you do your purchaser must wait two years before being able to initiate the legal procedures for a lease extension.

Why use us for your lease extension in Hampstead?

Using our service will provide you enhanced control over the value of your Hampstead leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Hampstead Lease Extension Example Cases:

Daisy, Hampstead, North London,

After unsuccessful discussions with the landlord of her ground floor apartment in Hampstead, Daisy started the lease extension process as the eighty year threshold was quickly advancing. The transaction completed in February 2009. The landlord’s fees were negotiated to a tad over 450 GBP.

Hampstead case:

Last Spring we were phoned by Dr Eliot García , who took over the lease of a first floor apartment in Hampstead in September 2009. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Comparable properties in Hampstead with 100 year plus lease were valued around £166,400. The average amount of ground rent was £60 invoiced monthly. The lease expired on 24 June 2080. Taking into account 54 years left we estimated the premium to the freeholder to extend the lease to be within £32,300 and £37,400 plus expenses.