Top reasons for Hinckley lease extension

Main reasons to commence your Hinckley lease extension today:

Increase your lease and increase your Hinckley property value

Hinckley leases on domestic deteriorating in value. Where your lease has approximately ninety years left, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for your lease extension to be in place before the term of the current lease drops below eighty years - otherwise a higher premium will be payable. Leasehold owners in Hinckley will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancer to confirm your eligibility. In certain situations you may not qualify. There are prescribed timetables and steps to comply with once the process is triggered so it’s prudent to be guided by a conveyancing solicitor during the process.

An extended lease is almost the same value as a freehold

Leasehold properties in Hinckley with more than one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.

Banks and Building Societies may not loan monies on a short lease

Mortgage companies are tightening their criteria and many now want flats to have at least sixty if not seventy years left at the expiry of the mortgage. Given that a number of flats in Hinckley were created in the 1950s, 1960s and 1970s this means many now need to be extended if they if they are to be mortgageable.

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

Using our service gives you increased control over the value of your Hinckley leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Hinckley Lease Extension Example Cases:

Michael, Hinckley, Leicestershire,

Michael was the the leasehold owner of a 2 bedroom flat in Hinckley being sold with a lease of fraction over 72 years unexpired. Michael informally spoke with his freeholder a well known local-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Michael to invoke his statutory right. Michael procured expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.

Hinckley case:

Last Summer we were approach by Ms C Roux , who acquired a purpose-built flat in Hinckley in March 2006. The question was if we could estimate the premium would likely be to prolong the lease by 90 years. Comparative flats in Hinckley with 100 year plus lease were worth £255,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease terminated in 2097. Taking into account 71 years left we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of fees.

Hinckley case:

In 2014 we were e-mailed by Mr and Mrs. D Edwards who, having bought a garden apartment in Hinckley in October 2000. We are asked if we could approximate the price would be to prolong the lease by ninety years. Comparable homes in Hinckley with 100 year plus lease were valued about £254,200. The mid-range ground rent payable was £60 collected yearly. The lease ran out on 7 January 2077. Considering the 51 years outstanding we estimated the premium to the landlord for the lease extension to be within £43,700 and £50,600 plus expenses.