Main reasons to start your Hornsea lease extension

Why you should commence your Hornsea lease extension today:

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

The re-sale value of a leasehold property in Hornsea depends on how many years the lease has left to run. If it is near to or fewer than 80 years you should foresee problems on re-sale, so it is recommended to arrange for the lease to be extended prior to buying. It is ideal to start the process of extending the lease is when the lease still has 82 years to run so that all matters can be finalised ahead of the eighty year mark. Statute entitles Hornsea qualifying lessees to a 90 year extension added to their remaining lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.

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

Leasehold properties in Hornsea with over one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.

Banks and Building Societies may decide not to grant a mortgage on a short lease

Almost all mortgage lenders require a lengthy amount of time left on any leasehold residence before they will contemplate providing a mortgage on it. Even if you don't require a mortgage, you should be mindful that it is likely that someone intending to buy your property in the future might well do, so if they can't secure a mortgage, then the value of the property could suffer. In the last decade most mortgage lenders have increased the required minimum lease length that they are prepared to accept

What makes us experts in Hornsea lease extensions?

Lease extensions in Hornsea can be a difficult process. We recommend you procure guidance from a lawyer and valuer well versed in the legislation and lease extension process.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Hornsea lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Hornsea Lease Extension Case Studies:

Leah, Hornsea, East Yorkshire,

Subsequent to lengthy negotiations with the landlord of her purpose-built flat in Hornsea, Leah commenced the lease extension process as the 80 year threshold was swiftly nearing. The lease extension was finalised in January 2010. The freeholder’s fees were negotiated to slightly above 700 pounds.

Hornsea case:

Last month we were e-mailed by Mrs Jessica Miller , who took over the lease of a purpose-built flat in Hornsea in August 2006. The question was if we could approximate the price would likely be to prolong the lease by a further 90 years. Identical properties in Hornsea with 100 year plus lease were in the region of £198,400. The mid-range amount of ground rent was £65 invoiced quarterly. The lease elapsed in 2085. Taking into account 59 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 not including costs.

Hornsea case:

Last Christmas we were called by Mr and Mrs. K Rose , who took over the lease of a studio apartment in Hornsea in April 2005. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Similar premises in Hornsea with a long lease were in the region of £255,000. The average ground rent payable was £50 invoiced yearly. The lease elapsed in 2096. Given that there were 70 years unexpired we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including legals.