Why you should start your Hersham lease extension

Main reasons to commence your Hersham lease extension today:

A Hersham leasehold property depreciates with the years remaining on the lease.

Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will ordinarily be granted for a prescribed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Hersham. Inevitably, the length of lease left reduces over time. This may slip by relatively unnoticed when the property has to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Eligible leaseholders in Hersham have the right to extend the lease for an additional ninety years under the 1993 Leasehold Reform Act. Please give careful attention before putting off your Hersham lease extension. Holding off the cost now only increases the price you will eventually incur to extend your lease

Hersham property with a lease extension is almost the same value as a freehold

It is generally considered that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for many years in the future.

Banks and Building Societies may decide not to issue a mortgage on a short lease

Whether or not the lease is be regarded as a short lease varies by mortgage company, yet lending institutions start to get jittery at around 75 years. This will be problematic as and when you need to market or refinance your flat as it will be effectively unmortgageable. Even though you may not have an imminent plan to sell but when you do your purchaser must hold off for 2 years before they can commence the legal procedures for an extension to the lease.

What makes us experts in Hersham lease extensions?

The lawyers that we work with handle Hersham lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.

Hersham Lease Extension Case Summaries:

Courtney, Hersham, Surrey,

After protracted correspondence with the freeholder of her ground floor flat in Hersham, Courtney started the lease extension process as the eighty year threshold was rapidly advancing. The transaction completed in March 2015. The landlord’s charges were kept to an absolute minimum.

Hersham case:

In 2011 we were approached by Mrs P David who, having acquired a purpose-built flat in Hersham in September 2006. The dilemma was if we could shed any light on how much (roughly) price could be for a 90 year extension to my lease. Comparative residencies in Hersham with an extended lease were in the region of £168,800. The average amount of ground rent was £60 billed yearly. The lease elapsed in 2081. Having 55 years left we estimated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 exclusive of expenses.