Top reasons for Hollywood lease extension

Top reasons for lease extension now:

Increase your lease and increase your Hollywood property value

The re-sale value of a leasehold property in Hollywood depends on how long the lease has remaining. If it is near to or less than 80 years you should expect problems on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. It is ideal to start the lease extension process when a lease still has 82 years unexpired so that all matters can be finalised in advance of the 80 year threshold. Leasehold Reform legislation entitles Hollywood qualifying lessees to obtain a lease extension of ninety years on top of the remaining lease term at a peppercorn rent (that is, rent free). The intention of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.

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

Leasehold residencies in Hollywood with in excess of one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.

Banks and Building Societies may not issue a mortgage on a short lease

Banks and Building Societies have set criteria when loaning monies secured on leasehold homes. Some will simply not lend at all once an unexpired lease term drops beneath a specified unexpired lease term. Many Mortgage lenders will not regard property with an unexpired below seventy years as acceptable security. In addition to impacting your ability to sell, it is also relevant if you are intending to remortgage your Hollywood home.

What makes us experts in Hollywood lease extensions?

The conveyancing solicitors that we work with procure 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 conveyancer we work with provide it.

Hollywood Lease Extension Case Summaries:

Charlotte, Hollywood, Worcestershire,

Subsequent to unsuccessful negotiations with the landlord of her garden flat in Hollywood, Charlotte initiated the lease extension process just as her lease was coming close to the critical 80-year threshold. The transaction completed in May 2013. The landlord’s fees were restricted to below 650 GBP.

Hollywood case:

Last Summer we were e-mailed by Mr U Evans , who took over the lease of a ground floor apartment in Hollywood in August 1997. The dilemma was if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Identical premises in Hollywood with a long lease were in the region of £255,000. The average ground rent payable was £50 collected every twelve months. The lease ended in 2097. Considering the 71 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of fees.

Hollywood case:

In 2013 we were called by Mrs Rhiannon Martinez who, having took over the lease of a garden apartment in Hollywood in November 2003. The dilemma was if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Comparative properties in Hollywood with a long lease were in the region of £254,200. The average amount of ground rent was £60 invoiced monthly. The lease expired in 2077. Given that there were 51 years unexpired we approximated the premium to the landlord to extend the lease to be between £43,700 and £50,600 not including legals.