Top reasons for Hawkhurst lease extension

Top reasons for lease extension now:

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

The market value of Hawkhurst leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase significantly once the remaining term is less than eighty years

An extended lease has roughly the same value as a freehold

Leasehold residencies in Hawkhurst with in excess of one hundred 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 circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.

Mortgage lenders may decide not to grant a mortgage on a short lease

Mortgage companies do not like short residential leases. You are likely to experience difficulties if you wish to sell your flat in Hawkhurst if the remaining lease term is less than the criteria set by most lenders. Different mortgage companies have varying criteria but generally they are looking for an unexpired term of at least seventy years.

What makes us experts in Hawkhurst lease extensions?

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

Hawkhurst Lease Extension Example Cases:

Alexander, Hawkhurst, Kent

Last October Alexander, came perilously close to the 80-year threshold with the lease on his purpose- built flat in Hawkhurst. Having purchased his flat two decades ago, the lease term was of minimal concern. Fortunately, he realised he needed to take action soon on Extending the lease. Alexander was able to extend his lease at the eleventh hour in July. Alexander and the freeholder via the managing agents subsequently settled on an amount of £5,000 . If he had missed the deadline, the figure would have gone up by a minimum £1,150.

Hawkhurst case:

In 2014 we were e-mailed by Mr and Mrs. N González who, having was assigned a lease of a studio flat in Hawkhurst in February 2011. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year extension to my lease. Comparative flats in Hawkhurst with an extended lease were valued around £250,000. The mid-range amount of ground rent was £50 collected monthly. The lease terminated in 2095. Having 69 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including expenses.

Hawkhurst case:

In 2010 we were e-mailed by Dr P Scott who, having took over the lease of a purpose-built flat in Hawkhurst in May 2005. We are asked if we could approximate the premium could be to extend the lease by an additional years. Comparable homes in Hawkhurst with a long lease were valued about £285,000. The average ground rent payable was £55 collected quarterly. The lease lapsed in 2106. Having 80 years left we approximated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of legals.