Why you should commence your Hockley Heath lease extension

Why you should commence your Hockley Heath lease extension today:

A Hockley Heath lease 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. This lease will normally be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Hockley Heath. Clearly, the length of lease remaining reduces over time. This is often ignored and only becomes a problem when the residence needs to be disposed of or refinanced. The shorter the lease the lower the value of the property and the more it will cost to extend the lease. Eligible long lease owners in Hockley Heath have the right to extend the lease for a further 90 years under the 1993 Leasehold Reform Act. You should give due deliberation before putting off your Hockley Heath lease extension. Putting off the cost now only increases the price you will eventually incur to extend your lease

Hockley Heath property with a lease extension has roughly the same value as a freehold

Leasehold premises in Hockley Heath with more than 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.

Banks and Building Societies may not finance a property on a short lease

Lenders are really restricting their approach as regards to properties in Hockley Heath with short leases. For example you might discover that their lending criteria are stricter and that they alter interest rates depending on the unexpired lease term. Some may even refuse to lend completely, so if you wanted to sell, your remaining options would be to find a cash buyer, or hope for the best at auction thus narrowing the number of prospective buyers.

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

The conveyancing solicitors that we work with handle Hockley Heath 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 conveyancing solicitor we work with provide it.

Hockley Heath Lease Extension Case Studies:

Daisy, Hockley Heath, Warwickshire,

Off the back of lengthy correspondence with the freeholder of her one bedroom apartment in Hockley Heath, Daisy started the lease extension process as the 80 year mark was fast advancing. The lease extension was concluded in October 2005. The freeholder’s fees were restricted to approximately 550 pounds.

Hockley Heath case:

Dr U Robinson owned a first floor apartment in Hockley Heath in March 2007. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Identical properties in Hockley Heath with a long lease were worth £265,000. The average amount of ground rent was £55 billed yearly. The lease lapsed in 2100. Given that there were 74 years remaining we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including expenses.

Hockley Heath case:

Last Autumn we were e-mailed by Mr and Mrs. U Bell , who took over the lease of a basement apartment in Hockley Heath in February 2010. We are asked if we could approximate the premium would be to extend the lease by an additional years. Comparative flats in Hockley Heath with a long lease were in the region of £166,400. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease elapsed in 2080. Having 54 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £32,300 and £37,400 not including fees.