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.

Hornsea leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. It is the case that most Hornsea tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Hornsea you should investigate if your lease has between 70 and ninety years left. There are good reasons why a Hornsea leaseholder with a lease having around eighty years left should take action to ensure that a lease extension is effected without delay

An extended lease has roughly the same value as a freehold

Leasehold residencies in Hornsea with in excess of one hundred years outstanding on the lease are sometimes 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 buying the freehold unless savings on ground rent and estate charges justify it.

Mortgage lenders may not loan monies with a short lease

Most mortgage lenders have tightened lending criteria in the last ten years and borrowers are finding it increasingly difficult to raise finance or re-mortgage against flats with shorter lease terms, particularly below seventy years as they are regarded as insufficient for lending purposes.

What makes us experts in Hornsea lease extensions?

Engaging our service will provide you increased control over the value of your Hornsea leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Hornsea Lease Extension Case Summaries:

Chelsea, Hornsea, East Yorkshire,

In the wake of 9 months of lengthy negotiations with the freeholder of her studio flat in Hornsea, Chelsea started the lease extension process as the 80 year mark was quickly approaching. The legal work completed in January 2011. The freeholder’s fees were negotiated to less than 450 pounds.

Hornsea case:

In 2011 we were approached by Ms A Wright who, having owned a one bedroom apartment in Hornsea in September 2000. We are asked if we could estimate the compensation to the landlord would be for a ninety year lease extension. Comparable flats in Hornsea with an extended lease were in the region of £173,800. The mid-range ground rent payable was £65 invoiced per annum. The lease terminated on 12 February 2081. Having 55 years left we calculated the premium to the landlord to extend the lease to be within £31,400 and £36,200 exclusive of fees.

Hornsea case:

Mrs W Anderson completed a garden apartment in Hornsea in February 2000. The dilemma was if we could shed any light on how much (roughly) price would be to prolong the lease by a further 90 years. Identical premises in Hornsea with a long lease were worth £235,200. The average amount of ground rent was £45 billed monthly. The lease lapsed in 2092. Taking into account 66 years left we calculated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including fees.