Why you should commence your Hartfield lease extension

Top reasons for lease extension now:

A Hartfield lease depreciates with the years remaining on the lease.

Hartfield 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 the lease gets more expensive. Most owners of residential leasehold property in Hartfield enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Hartfield you would be well advised to see if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the property will be worth the same as a freehold for decades to come.

Lenders will not lend on a short lease

The propensity since the credit crunch has been for lenders 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 lenders were content with twenty years plus the term of the loan - typically fifty year leases but those requirements evolved by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

What makes us experts in Hartfield lease extensions?

Irrespective of whether you are a tenant or a landlord in Hartfield,the lease extension experts 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 Hartfield valuers.

Hartfield Lease Extension Example Cases:

Cameron, Hartfield, East Sussex

14 months ago Cameron, came perilously near to the eighty-year mark with the lease on his basement flat in Hartfield. In buying his property twenty years previously, the lease term was of little concern. Fortunately, he noticed he would soon be paying an escalated premium for a lease extension. Cameron arranged for a lease extension at the eleventh hour last September. Cameron and the freeholder subsequently settled on an amount of £6,000 . If the lease had gone lower than 80 years, the amount would have increased by a minimum £1,125.

Hartfield case:

Ms Sophie Roux acquired a purpose-built apartment in Hartfield in April 2012. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by ninety years. Comparable homes in Hartfield with 100 year plus lease were worth £176,200. The mid-range amount of ground rent was £65 billed every twelve months. The lease ended on 26 September 2082. Given that there were 56 years remaining we approximated the compensation to the freeholder to extend the lease to be within £29,500 and £34,000 plus legals.

Hartfield case:

In 2011 we were called by Mr and Mrs. P Pérez who, having owned a garden flat in Hartfield in October 2004. The dilemma was if we could shed any light on how much (roughly) premium would be to prolong the lease by an additional years. Comparative premises in Hartfield with 100 year plus lease were in the region of £237,600. The mid-range ground rent payable was £45 invoiced monthly. The lease expired in 2093. Considering the 67 years left we calculated the compensation to the freeholder to extend the lease to be between £11,400 and £13,200 exclusive of expenses.