Why you should commence your Hilsea lease extension

Main reasons to start your Hilsea lease extension today:

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

Hilsea leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Hilsea residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Hilsea you must check if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under eighty years, the cost of any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value

An extended lease has roughly the same value as a freehold

Leasehold premises in Hilsea with over 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 home. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.

Lenders will not loan monies on a short lease

Almost all mortgage lenders will be unwilling to lend on a lease with under 70 years left to run - although this varies between mortgage companies. A buyer will likely encounter difficulties to obtain a mortgage and this will result in your Hilsea property becoming difficult to sell or refinance.

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

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

Hilsea Lease Extension Example Cases:

Phoebe, Hilsea, Hampshire,

After unsuccessful correspondence with the freeholder of her studio apartment in Hilsea, Phoebe commenced the lease extension process just as the lease was coming close to the crucial 80-year deadline. The transaction was concluded in January 2015. The freeholder’s costs were negotiated to a tad over six hundred GBP.

Hilsea case:

Mr P Cooper took over the lease of a basement flat in Hilsea in June 2010. The dilemma was if we could shed any light on how much (roughly) price would be for a 90 year extension to my lease. Identical properties in Hilsea with an extended lease were worth £200,000. The average ground rent payable was £50 billed per annum. The lease expired on 28 April 2103. Having 77 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of professional charges.

Hilsea case:

In 2012 we were called by Dr Ryan Williams who, having purchased a one bedroom apartment in Hilsea in August 2011. The dilemma was if we could estimate the price could be to extend the lease by ninety years. Comparable residencies in Hilsea with an extended lease were worth £260,200. The mid-range ground rent payable was £65 collected per annum. The lease finished in 2092. Given that there were 66 years left we calculated the compensation to the landlord to extend the lease to be within £16,200 and £18,600 exclusive of professional charges.