Why you should start your Hornsea lease extension

Top reasons for lease extension now:

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

Unfortunately that a Hornsea residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Hornsea property prices.Once your lease gets to 85ish years, you need to start considering a lease extension. If the number of years remaining drops under 80 years, you will then be required to pay half 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 Hornsea will be able to extend under the legislation; however a conveyancer should be able to confirm if you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the process.

Hornsea property with a lease extension has roughly the same value as a freehold

It is generally accepted that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the property will be equivalent in value to a freehold for many years ahead.

Mortgage lenders may decide not to grant a mortgage on a short lease

Most banks and building societies will not lend on a lease with less than seventy years remaining - although this varies from lender to lender. A buyer will likely find it difficult to obtain a mortgage and this could result in your Hornsea property being difficult to sell or to obtain finance on.

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

Regardless of whether you are a tenant or a freeholder in Hornsea,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hornsea valuers.

Hornsea Lease Extension Example Cases:

Archie, Hornsea, East Yorkshire

Last Christmas Archie, started to get near to the 80-year threshold with the lease on his first floor flat in Hornsea. In buying his home two decades ago, the unexpired term was of little importance. Luckily, it dawned on him that he would imminently be paying an escalated premium for a lease extension. Archie extended the lease just ahead of time in January. Archie and the freeholder eventually agreed on the final figure of £6,000 . If the lease had slipped to less than eighty years, the sum would have become more exhorbitant by at least £1,150.

Hornsea case:

Last year we were phoned by Dr E Girard , who moved into a ground floor apartment in Hornsea in November 2010. We are asked if we could approximate the premium would likely be for a 90 year extension to my lease. Comparable homes in Hornsea with 100 year plus lease were worth £255,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease elapsed on 11 February 2096. Taking into account 70 years unexpired we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including fees.

Hornsea case:

Dr O Davies was assigned a lease of a ground floor flat in Hornsea in June 1996. The dilemma was if we could estimate the premium would be to extend the lease by a further 90 years. Identical homes in Hornsea with an extended lease were in the region of £246,800. The average ground rent payable was £60 billed monthly. The lease expiry date was on 7 January 2076. Considering the 50 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £44,700 and £51,600 exclusive of expenses.