Why you should commence your Hanworth lease extension

Top reasons for lease extension now:

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

Hanworth leases on domestic deteriorating in value. Where your lease has in the region of 90 years left, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for the lease extension to be in place before the term of the existing lease drops lower than 80 years - otherwise a higher premium will be payable. Leasehold owners in Hanworth will usually be legally entitled to a lease extension; however a solicitor will check your eligibility. In certain situations you may not be entitled. There are also strict timetables and steps to follow once the process has commenced so it’s prudent to be guided by a conveyancer during the process.

An extended lease has roughly the same value as a freehold

Leasehold residencies in Hanworth with more than 100 years left 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 home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.

Lending institutions may not issue a mortgage on a short lease

The trend since 2008 has been for mortgage companies to tighten lending criteria across the board - this has extended to the property over which the home loan is to be charged. This has meant the unexpired lease term required by mortgage companies has increased. Historically banks were content with 25 years plus the term of the loan - routinely 50 year leases but those requirements have been chipped away by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

What makes us experts in Hanworth lease extensions?

Regardless of whether you are a tenant or a freeholder in Hanworth,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Hanworth valuers.

Hanworth Lease Extension Example Cases:

Georgia, Hanworth, North London,

After lengthy negotiations with the freeholder of her first floor apartment in Hanworth, Georgia initiated the lease extension process as the eighty year threshold was quickly advancing. The lease extension was concluded in July 2008. The landlord’s fees were kept to an absolute minimum.

Hanworth case:

Last month we were phoned by Mrs Rebecca Laurent , who bought a basement apartment in Hanworth in March 1995. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by an additional years. Comparable properties in Hanworth with 100 year plus lease were worth £205,000. The average ground rent payable was £50 billed quarterly. The lease finished on 4 November 2105. Given that there were 79 years remaining we calculated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of fees.