Why you should start your Hemsworth lease extension

Why you should start your Hemsworth lease extension today:

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

It’s a harsh truth that a Hemsworth residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Hemsworth property market.Where your lease has approximately 90 years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below 80 years - otherwise a higher amount will be payable. The majority of flat owners in Hemsworth will be able to extend under the legislation; however a lawyer will be able to confirm whether you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the process.

An extended lease is almost the same value as a freehold

It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the property will be worth the same as a freehold for decades to come.

Lenders will not loan monies on a short lease

Mortgage lenders have set criteria when lending monies secured on leasehold property. Some will simply refuse lend at all once an unexpired lease term goes beneath a certain unexpired lease term. Many Banks and Building Societies will not consider property with an unexpired term of less than 75 years as acceptable security. In addition to this being important when selling, it is also relevant where you are wanting to refinance your Hemsworth property.

Why use us for your lease extension in Hemsworth?

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

Hemsworth Lease Extension Example Cases:

Katie, Hemsworth, South Yorkshire,

Off the back of protracted negotiations with the landlord of her one bedroom flat in Hemsworth, Katie initiated the lease extension process just as the lease was approaching the critical 80-year deadline. The legal work completed in July 2012. The freeholder’s charges were negotiated to slightly above 550 pounds.

Hemsworth case:

Last Autumn we were contacted by Ms R Gómez , who was assigned a lease of a ground floor apartment in Hemsworth in July 2003. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by ninety years. Comparable flats in Hemsworth with a long lease were valued around £275,000. The mid-range amount of ground rent was £55 collected annually. The lease expired on 20 March 2102. Taking into account 76 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus costs.

Hemsworth case:

Mr and Mrs. M García took over the lease of a first floor flat in Hemsworth in January 2005. The question was if we could shed any light on how much (roughly) price could be for a ninety year lease extension. Comparative properties in Hemsworth with 100 year plus lease were in the region of £176,200. The mid-range amount of ground rent was £65 collected yearly. The lease finished on 10 August 2082. Given that there were 56 years outstanding we approximated the premium to the freeholder for the lease extension to be within £29,500 and £34,000 not including fees.