Why you should commence your Hockley lease extension

Why you should commence your Hockley lease extension today:

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

For anyone whose Hockley home is held on a long lease, the message is clear – if no remedial action is taken, your property will ultimately revert to your landlord, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease.

Hockley property with a lease extension is almost the same value as a freehold

It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.

Lenders will not lend on a short lease

Lenders are really clamping down as regards to properties in Hockley with short leases. For example you may find that their lending requirements are stricter and that they adjust interest rates depending on the unexpired lease term. Some may even refrain from lending completely, so if you wanted to sell, your remaining options would be to find a cash buyer, or try your luck at auction thus restricting the amount of prospective purchasers.

What makes us experts in Hockley lease extensions?

Engaging our service gives you better control over the value of your Hockley leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Hockley Lease Extension Example Cases:

Max, Hockley, Essex,

Max was the the leasehold owner of a conversion apartment in Hockley being marketed with a lease of fraction over 59 years outstanding. Max informally contacted his landlord a well known Manchester-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 per annum. Ordinarily, ground rent would not be payable on a lease extension were Max to invoke his statutory right. Max procured expert legal guidance and was able to make an informed decision and handle with the matter and ending up with a market value flat.

Hockley case:

In 2010 we were called by Dr I Moreau who, having acquired a purpose-built flat in Hockley in June 2005. We are asked if we could approximate the price could be to extend the lease by a further 90 years. Identical flats in Hockley with 100 year plus lease were valued about £235,200. The average amount of ground rent was £45 invoiced every twelve months. The lease terminated in 2092. Taking into account 66 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of costs.

Hockley case:

Mr and Mrs. A Thompson bought a one bedroom apartment in Hockley in March 2000. The dilemma was if we could approximate the premium would be for a ninety year lease extension. Comparable premises in Hockley with a long lease were worth £275,000. The average ground rent payable was £55 collected quarterly. The lease terminated in 2103. Considering the 77 years unexpired we approximated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of costs.