Why you should commence your Hebden Bridge lease extension

Why you should start your Hebden Bridge lease extension today:

Increase your lease and increase your Hebden Bridge property value

Hebden Bridge leases on residential properties are gradually decreasing in 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. Legislation has been in place for sometime now allowing qualifying Hebden Bridge residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Hebden Bridge you should see if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value

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

Leasehold premises in Hebden Bridge with over 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.

Banks and Building Societies will not finance a property with a short lease

The trend since the credit crunch has been for banks to tighten lending requirements across the board - this has extended to the types of security over which the home loan is to be charged. This has resulted in the minimum number of years remaining under the lease required by lenders has increased. Historically banks were content with 25 years plus the term of the loan - routinely 50 year leases but those requirements have been chipped away by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

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

Irrespective of whether you are a tenant or a landlord in Hebden Bridge,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hebden Bridge valuers.

Hebden Bridge Lease Extension Example Cases:

Melissa, Hebden Bridge, West Yorkshire,

Off the back of protracted correspondence with the landlord of her leasehold apartment in Hebden Bridge, Melissa initiated the lease extension process just as her lease was coming close to the crucial eighty-year threshold. The lease extension completed in July 2007. The freeholder’s charges were kept to an absolute minimum.

Hebden Bridge case:

Last Autumn we were e-mailed by Dr P David , who took over the lease of a first floor apartment in Hebden Bridge in August 2006. The question was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparative residencies in Hebden Bridge with an extended lease were valued around £245,000. The average ground rent payable was £50 invoiced per annum. The lease ran out in 2094. Given that there were 68 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus costs.

Hebden Bridge case:

In 2014 we were e-mailed by Mr Alex Mercier who, having acquired a one bedroom flat in Hebden Bridge in March 2004. The dilemma was if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Comparable properties in Hebden Bridge with a long lease were valued about £285,000. The mid-range ground rent payable was £55 collected annually. The lease concluded on 12 February 2105. Given that there were 79 years remaining we estimated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of expenses.