Why you should start your Hook lease extension

Main reasons to commence your Hook lease extension today:

A Hook lease depreciates with the years remaining on the lease.

It’s a harsh truth that a Hook residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Hook property market.Where your lease has approximately ninety years left, you should start considering a lease extension. If the number of years remaining dips below 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Hook will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the formalities.

An extended lease is almost the same value as a freehold

Leasehold premises in Hook with over 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.

Mortgage lenders may decide not to lend on a short lease

Most mortgage lenders have constrained their lending criteria in the last ten years and borrowers are finding it increasingly difficult to raise funding or re-mortgage against flats with shorter lease terms, particularly below seventy years as they are considered to be deficient security.

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

Regardless of whether you are a tenant or a freeholder in Hook,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Hook valuers.

Hook Lease Extension Example Cases:

Samuel, Hook, Hampshire,

Samuel owned a 2 bedroom flat in Hook on the market with a lease of fraction over 61 years unexpired. Samuel on an informal basis approached his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £125 yearly. Ordinarily, ground rent would not be payable on a lease extension were Samuel to invoke his statutory right. Samuel obtained expert advice and secured satisfactory resolution without going to tribunal and readily saleable.

Hook case:

In 2014 we were contacted by Mr F Jackson who, having took over the lease of a ground floor apartment in Hook in September 2007. The dilemma was if we could shed any light on how much (approximately) price could be to extend the lease by a further 90 years. Similar homes in Hook with 100 year plus lease were in the region of £280,000. The mid-range amount of ground rent was £55 billed per annum. The lease ended in 2102. Considering the 78 years outstanding we estimated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 plus professional charges.