Main reasons to commence your Hollywood lease extension

Why you should commence your Hollywood lease extension today:

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

Hollywood leases on residential properties are gradually losing value. Where your lease has approximately 90 years left, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease drops below this level then you begin paying an additional element called marriage value. Leasehold owners in Hollywood will mostly qualify for a lease extension; however It would be wise to check with a lawyer to check your eligibility. In some situations you may not qualify. There are prescribed timetables and procedures to comply with once the process is triggered so it’s prudent to be guided by a lawyer during the process.

An extended lease has roughly the same value as a freehold

It is generally considered that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.

Banks and Building Societies may not grant a mortgage with a short lease

Lending institutions have specific criteria when loaning monies charged on leasehold homes. Many will simply refrain from lending at all once an unexpired lease term slips beneath a certain unexpired lease term. Many Lending institutions will not regard property with a remaining below seventy years as acceptable security. As well as this being important when selling, it is also relevant where you are seeking to remortgage your Hollywood property.

What makes us experts in Hollywood lease extensions?

The lawyers that we work with undertake Hollywood 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 lawyer we work with provide it.

Hollywood Lease Extension Case Summaries:

Jennifer, Hollywood, Worcestershire,

Off the back of unsuccessful negotiations with the freeholder of her ground floor flat in Hollywood, Jennifer initiated the lease extension process as the 80 year mark was swiftly advancing. The lease extension was concluded in April 2014. The landlord’s charges were kept to an absolute minimum.

Hollywood case:

In 2012 we were contacted by Dr J Rodríguez who, having purchased a one bedroom flat in Hollywood in July 1998. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by ninety years. Similar premises in Hollywood with a long lease were valued about £256,600. The mid-range amount of ground rent was £60 collected annually. The lease elapsed in 2078. Taking into account 52 years unexpired we approximated the premium to the freeholder to extend the lease to be between £39,000 and £45,000 plus legals.

Hollywood case:

Mr and Mrs. D Howard moved into a purpose-built apartment in Hollywood in May 2001. The question was if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Identical homes in Hollywood with a long lease were worth £218,000. The mid-range ground rent payable was £45 billed annually. The lease terminated on 5 October 2089. Given that there were 63 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £17,100 and £19,800 plus professional charges.