Top reasons for Hawkhurst lease extension

Main reasons to commence your Hawkhurst lease extension today:

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

The 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 escalate significantly once the unexpired lease term is less than 80 years

An extended lease is almost the same value as a freehold

It is generally considered that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.

Lenders will not finance a property with a short lease

The definition of a short lease depends on the specific mortgage company, yet lending institutions start to get nervous at around 75 years. This will cause difficulties when you come to market or remortgage your flat as it will be effectively unmortgageable. You may not have an imminent plan to sell but when you do your purchaser will need to wait two years before being able to commence the legal procedures for an extension to the lease.

Get in touch with one of our Hawkhurst lease extension solicitors or enfranchisement solicitors

The conveyancers that we work with handle Hawkhurst lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.

Hawkhurst Lease Extension Example Cases:

Stanley, Hawkhurst, Kent

Two years ago Stanley, started to get close to the 80-year threshold with the lease on his ground floor flat in Hawkhurst. In buying his property two decades ago, the lease term was of minimal bearing. Luckily, he recognised he needed to take steps soon on a lease extension. Stanley arranged for a lease extension at the eleventh hour last August. Stanley and the freeholder via the management company subsequently settled on sum of £5,500 . If he had missed the deadline, the sum would have become more costly by a minimum £1,050.

Hawkhurst case:

Mr and Mrs. G Johnson took over the lease of a purpose-built flat in Hawkhurst in March 2001. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Comparable properties in Hawkhurst with 100 year plus lease were valued around £183,600. The average ground rent payable was £65 collected every twelve months. The lease ended on 25 November 2083. Given that there were 57 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 not including professional charges.

Hawkhurst case:

Mr and Mrs. C White completed a one bedroom apartment in Hawkhurst in October 2007. The question was if we could approximate the compensation to the landlord could be to extend the lease by a further 90 years. Comparative flats in Hawkhurst with an extended lease were valued around £245,000. The mid-range ground rent payable was £50 collected yearly. The lease ran out on 28 February 2094. Having 68 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus expenses.