Top reasons for Haxby lease extension

Top reasons for lease extension now:

Increase your lease and increase your Haxby property value

Haxby leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Most owners of residential leasehold property in Haxby enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Haxby you should check if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value

Haxby property with a lease extension has roughly the same value as a freehold

Leasehold properties in Haxby with in excess of 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.

Mortgage lenders will not loan monies with a short lease

The trend since the credit crunch has been for mortgage companies to tighten lending criteria generally - this has extended to the types of security over which the home loan is to be granted. This has meant the unexpired lease term required by lenders has increased. Historically mortgage companies would lend on a lease with twenty years plus the term of the loan - routinely 50 year leases but those requirements have been chipped away by the requirement for longer and longer leases - many use a minimum term of 75 years as a prerequisite.

Why use us for your lease extension in Haxby?

Engaging our service will provide you increased control over the value of your Haxby leasehold, as your property will be more valuable and marketable 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.

Haxby Lease Extension Example Cases:

Isaac, Haxby, North Yorkshire

Last Christmas Isaac, came dangerously close to the eighty-year threshold with the lease on his studio flat in Haxby. Having purchased his property twenty years previously, the unexpired term was of no significance. Luckily, he noticed he would imminently be paying an escalated premium for a lease extension. Isaac extended the lease just under the wire in March. Isaac and the freeholder via the management company ultimately settled on sum of £5,000 . If he not met the deadline, the sum would have gone up by at least £1,050.

Haxby case:

Last April we were e-mailed by Ms Yasmin Lefèvre , who owned a one bedroom apartment in Haxby in July 2005. The dilemma was if we could shed any light on how much (approximately) premium would be to prolong the lease by ninety years. Comparable homes in Haxby with an extended lease were valued about £189,000. The average ground rent payable was £55 invoiced monthly. The lease ran out on 4 April 2079. Having 53 years remaining we approximated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 exclusive of expenses.

Haxby case:

Dr Natalie Brooks owned a one bedroom apartment in Haxby in July 2008. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by a further 90 years. Comparable flats in Haxby with an extended lease were valued around £290,000. The average ground rent payable was £45 billed per annum. The lease finished on 10 February 2099. Considering the 73 years unexpired we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.