Why you should start your Hope lease extension

Top reasons for lease extension now:

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

Hope leases on domestic deteriorating in value. Where your lease has approximately 90 years remaining, you should start thinking about a lease extension. If lease term is under 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Hope will usually qualify for a lease extension; however a solicitor will confirm if you qualify. In certain circumstances you may not qualify. There are also strict timetables and steps to follow once the process has commenced so it’s prudent to be guided by a conveyancer during the process.

An extended lease has roughly the same value as a freehold

Leasehold properties in Hope with in excess of one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.

Lenders may decide not to grant a mortgage with a short lease

Banks and building societies are distinct in their lending criteria. Some draw the line at seventy five years outstanding on the lease; others may be willing to lend with anything with more than 70 years. Below sixty years, it may be impossible to obtain a mortgage in the first place.

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

The conveyancers that we work with procure Hope 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.

Hope Lease Extension Case Summaries:

James, Hope, Flintshire,

James owned a studio flat in Hope on the market with a lease of a little over fifty eight years unexpired. James informally contacted his landlord a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were James to exercise his statutory right. James obtained expert advice and was able to make a more informed judgement and deal with the matter and readily saleable.

Hope case:

In 2014 we were phoned by Mr Liam Martin who, having was assigned a lease of a basement apartment in Hope in January 2006. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparative properties in Hope with an extended lease were valued about £166,400. The average ground rent payable was £60 invoiced monthly. The lease expired on 20 July 2080. Taking into account 54 years as a residual term we estimated the premium to the landlord for the lease extension to be between £32,300 and £37,400 not including fees.

Hope case:

In 2012 we were phoned by Mr and Mrs. G Roberts who, having bought a one bedroom apartment in Hope in March 2007. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparable premises in Hope with a long lease were valued about £227,800. The mid-range amount of ground rent was £45 collected yearly. The lease expired in 2091. Considering the 65 years outstanding we calculated the premium to the landlord for the lease extension to be within £13,300 and £15,400 not including fees.