Main reasons to commence your Hinckley lease extension

Main reasons to commence your Hinckley lease extension today:

Increase your lease and increase your Hinckley property value

The market value of Hinckley leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate materialy once the remaining term is less than eighty years

An extended lease is almost the same value as a freehold

Leasehold residencies in Hinckley with in excess of 100 years outstanding on the lease are sometimes 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 purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.

Mortgage lenders will not issue a mortgage with a short lease

Whether or not the lease is be regarded as a short lease depends on the specific mortgage company, yet lending institutions start to become concerned at around 75 years. This will cause difficulties when you wish to sell or refinance your property as it will be effectively unmortgageable. Even though you might not have an immediate desire to sell but when you do your buyer will have to hold off for two years before being able to commence the legal procedures for an extension to the lease.

Why use us for your lease extension in Hinckley?

Irrespective of whether you are a tenant or a landlord in Hinckley,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hinckley valuers.

Hinckley Lease Extension Example Cases:

Benjamin, Hinckley, Leicestershire

Last year Benjamin, came very close to the eighty-year threshold with the lease on his ground floor flat in Hinckley. Having bought his home 18 years ago, the length of the lease was of little relevance. Thankfully, he became aware that he would soon be paying way over the odds for Extending the lease. Benjamin extended the lease just in the nick of time last March. Benjamin and the landlord who owned the flat above in the end agreed on a premium of £5,000 . If the lease had descended lower than eighty years, the premium would have gone up by a minimum £1,050.

Hinckley case:

Mr and Mrs. D Robinson owned a basement apartment in Hinckley in September 2010. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year lease extension. Identical residencies in Hinckley with 100 year plus lease were in the region of £256,600. The average ground rent payable was £60 collected per annum. The lease finished in 2078. Given that there were 52 years unexpired we calculated the premium to the freeholder for the lease extension to be between £39,000 and £45,000 plus legals.

Hinckley case:

In 2013 we were contacted by Mr and Mrs. R White who, having completed a first floor flat in Hinckley in April 1998. The question was if we could approximate the price could be for a 90 year extension to my lease. Identical homes in Hinckley with a long lease were in the region of £218,000. The mid-range amount of ground rent was £45 billed quarterly. The lease expired on 15 July 2089. Given that there were 63 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £17,100 and £19,800 plus legals.