Why you should start your Hatch and Old Basing lease extension

Why you should commence your Hatch and Old Basing lease extension today:

A Hatch and Old Basing leasehold property depreciates with the years remaining on the lease.

With a residential leasehold premises in Hatch and Old Basing, you are actually buying a right to live in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive especially once there are less than 80 years remaining. Leasehold owners in Hatch and Old Basing with a lease drawing near to 81 years unexpired should seriously consider extending it without delay. When a lease has under eighty years outstanding, under the current legislation the landlord is entitled to calculate and charge a larger premium, assessed on a technical computation, strangely termed as “marriage value” which is payable.

Hatch and Old Basing property with a lease extension has roughly the same value as a freehold

Leasehold properties in Hatch and Old Basing with over 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 premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.

Mortgage lenders may not lend on a short lease

The trend since the credit crunch has been for banks to tighten lending requirements generally - this has extended to the types of security over which the home loan is to be granted. This has meant the minimum number of years remaining under the lease required by mortgage companies has increased. Historically mortgage companies would grant a mortgage on a lease 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 now have a minimum term of 75 years as standard.

Get in touch with one of our Hatch and Old Basing lease extension solicitors or enfranchisement solicitors

Engaging our service gives you enhanced control over the value of your Hatch and Old Basing leasehold, as your property will be more valuable and saleable in terms of lease length should you decide 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.

Hatch and Old Basing Lease Extension Example Cases:

Theo, Hatch and Old Basing, Hampshire,

Theo owned a 2 bedroom apartment in Hatch and Old Basing on the market with a lease of a few days over sixty years left. Theo informally approached his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Theo to invoke his statutory right. Theo obtained expert advice and secured an acceptable resolution without going to tribunal and ending up with a market value flat.

Hatch and Old Basing case:

Last month we were approach by Mrs Chantelle David , who acquired a basement flat in Hatch and Old Basing in August 2008. The question was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Comparable residencies in Hatch and Old Basing with a long lease were worth £191,000. The average ground rent payable was £65 billed yearly. The lease expired on 12 May 2084. Given that there were 58 years remaining we estimated the premium to the landlord for the lease extension to be between £23,800 and £27,400 exclusive of legals.

Hatch and Old Basing case:

Last March we were contacted by Mr and Mrs. Y Brooks , who bought a basement flat in Hatch and Old Basing in March 1999. We are asked if we could approximate the price could be to prolong the lease by a further 90 years. Comparative residencies in Hatch and Old Basing with an extended lease were valued around £250,000. The mid-range amount of ground rent was £50 billed monthly. The lease ended on 18 February 2095. Taking into account 69 years remaining we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including expenses.