Main reasons to commence your Hednesford lease extension

Top reasons for lease extension now:

Increase your lease and increase your Hednesford property value

With a long leasehold property in Hednesford, you effectively rent it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive especially once there are fewer than eighty years remaining. Residents in Hednesford with a lease approaching 81 years unexpired should seriously think of extending it sooner than later. When a lease has under 80 years left, under the current legislation the landlord is entitled to calculate and levy a greater amount, assessed on a technical calculation, strangely termed as “marriage value” which is due.

An extended lease is almost the same value as a freehold

Leasehold premises in Hednesford with in excess of 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.

Banks and Building Societies may not finance a property on a short lease

Mortgage companies do not lend on short residential leases. You are likely to encounter difficulties where you want to sell your flat in Hednesford if the unexpired term of your lease is less than the criteria set by the majority of mortgage companies. Different mortgage companies have different criteria but generally theyrequire a minimum remaining lease term of 65 years.

What makes us experts in Hednesford lease extensions?

Regardless of whether you are a tenant or a freeholder in Hednesford,the lease extension experts 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 Hednesford valuers.

Hednesford Lease Extension Case Studies:

Olivia, Hednesford, Staffordshire,

Trailing lengthy discussions with the landlord of her studio apartment in Hednesford, Olivia initiated the lease extension process as the 80 year mark was quickly nearing. The legal work was concluded in June 2006. The landlord’s charges were kept to an absolute minimum.

Hednesford case:

Mr and Mrs. C Carter acquired a purpose-built flat in Hednesford in November 2003. The dilemma was if we could estimate the premium would be to prolong the lease by a further 90 years. Comparative premises in Hednesford with 100 year plus lease were valued about £265,000. The mid-range amount of ground rent was £50 collected annually. The lease ended on 19 October 2099. Considering the 73 years outstanding we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus costs.

Hednesford case:

In 2010 we were contacted by Mr and Mrs. Y Brooks who, having purchased a one bedroom flat in Hednesford in August 2005. We are asked if we could approximate the price would likely be for a ninety year lease extension. Comparative flats in Hednesford with an extended lease were worth £264,000. The mid-range amount of ground rent was £60 collected quarterly. The lease ran out on 8 November 2079. Taking into account 53 years left we calculated the compensation to the freeholder for the lease extension to be between £37,100 and £42,800 plus legals.