Top reasons for Hermon lease extension

Top reasons for lease extension now:

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

Hermon 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. The majority of owners of residential leasehold property in Hermon enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Hermon you must see if your lease has between seventy and 90 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 pay is what is known as a marriage value

An extended lease has roughly the same value as a freehold

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

Mortgage lenders may not lend on a short lease

Mortgage lenders have specific criteria when loaning monies charged on leasehold property. Many will simply not lend at all once the remaining lease term goes below a certain unexpired lease term. Many Banks and Building Societies will not regard property with an unexpired below 75 years suitable security. As well as impacting your ability to sell, it is also relevant where you are wanting to remortgage your Hermon home.

Why use us for your lease extension in Hermon?

Lease extensions in Hermon can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and surveyor with experience in lease extensions.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Hermon lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Hermon Lease Extension Case Studies:

Theo, Hermon, Pembrokeshire,

Theo owned a studio flat in Hermon being sold with a lease of fraction over fifty eight years outstanding. Theo informally spoke with his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £125 per annum. No ground rent would be payable on a lease extension were Theo to invoke his statutory right. Theo procured expert advice and secured satisfactory resolution informally and readily saleable.

Hermon case:

In 2009 we were called by Dr B Rose who, having purchased a one bedroom apartment in Hermon in July 2005. We are asked if we could approximate the price would likely be to extend the lease by 90 years. Identical residencies in Hermon with an extended lease were in the region of £265,000. The average ground rent payable was £50 billed yearly. The lease ran out in 2100. Having 74 years as a residual term we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of costs.

Hermon case:

Ms T Clarke was assigned a lease of a studio apartment in Hermon in February 1996. The dilemma was if we could shed any light on how much (approximately) premium could be to prolong the lease by an additional years. Comparable homes in Hermon with an extended lease were in the region of £166,400. The average amount of ground rent was £60 collected quarterly. The lease expiry date was on 1 May 2080. Given that there were 54 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £32,300 and £37,400 not including costs.