Top reasons for Hindhead lease extension

Why you should commence your Hindhead lease extension today:

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

Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will usually be granted for a set period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Hindhead. Inevitably, the period of lease left shortens as time goes by. This is often ignored and only raises itself as an issue when the flat or house has to be disposed of or refinanced. The shorter the lease the less it is worth and the more it will cost to extend the lease. Qualifying long lease owners in Hindhead have the legal entitlement to extend the lease for a further 90 years under statute. You should give due consideration before delaying your Hindhead lease extension. Holding off that expense now only increases the price you will eventually incur for a lease extension

An extended lease has roughly the same value as a freehold

Leasehold properties in Hindhead with more than one hundred 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 home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.

Mortgage lenders may not lend with a short lease

The trend since over the last decade has been for banks to tighten lending criteria across the board - this has extended to the types of security over which the mortgage is to be granted. This has resulted in the unexpired lease term required by mortgage companies has increased. In the past banks were content with twenty years plus the term of the loan - typically 50 year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many use a minimum term of 75 years as standard.

What makes us experts in Hindhead lease extensions?

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

Hindhead Lease Extension Case Summaries:

Seth, Hindhead, Surrey

In 2014 Seth, started to get close to the 80-year threshold with the lease on his purpose- built apartment in Hindhead. Having bought his home twenty years previously, the length of the lease was of little significance. Thankfully, he realised he needed to take action soon on a lease extension. Seth extended the lease at the eleventh hour in August. Seth and the landlord who owned the flat above in the end agreed on the final figure of £5,000 . If the lease had fallen to less than eighty years, the amount would have gone up by at least £1,000.

Hindhead case:

In 2011 we were e-mailed by Dr B Gómez who, having completed a first floor flat in Hindhead in September 2011. We are asked if we could estimate the premium would be for a ninety year lease extension. Comparative premises in Hindhead with a long lease were valued about £176,200. The average ground rent payable was £65 invoiced monthly. The lease ran out on 21 September 2082. Given that there were 56 years outstanding we estimated the premium to the freeholder to extend the lease to be within £29,500 and £34,000 plus costs.

Hindhead case:

In 2013 we were phoned by Mr and Mrs. E Green who, having bought a first floor flat in Hindhead in June 2005. The dilemma was if we could estimate the premium would likely be for a ninety year extension to my lease. Identical properties in Hindhead with an extended lease were worth £242,600. The average amount of ground rent was £45 invoiced monthly. The lease terminated in 2093. Given that there were 67 years outstanding we approximated the compensation to the landlord to extend the lease to be between £11,400 and £13,200 plus costs.