Main reasons to commence your Hornsea lease extension

Top reasons for lease extension now:

Increase your lease and increase your Hornsea property value

Hornsea leases on domestic deteriorating in value. Where your lease has approximately 90 years left, you should start thinking about a lease extension. If lease term falls under 80 years, you will then have to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Hornsea will mostly qualify for a lease extension; however a solicitor should be able confirm your eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process is triggered so it’s best to be guided by a conveyancing solicitor during the process.

An extended lease has roughly the same value as a freehold

Leasehold premises in Hornsea with over 100 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 property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.

Lenders will not issue a mortgage on a short lease

Lenders are making their criteria more stringent and many now expect flats to have a minimum of 60 if not 70 years left once the mortgage has expired. Given that many flats in Hornsea were created in the fifties, sixties and seventies as a result many now require lease extensions if they wish to obtain a mortgage.

What makes us experts in Hornsea lease extensions?

The lawyers that we work with handle Hornsea 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 conveyancing solicitor we work with provide it.

Hornsea Lease Extension Example Cases:

Kate, Hornsea, East Yorkshire,

In the wake of eight months of protracted discussions with the landlord of her basement flat in Hornsea, Kate initiated the lease extension process as the eighty year threshold was rapidly approaching. The legal work completed in November 2006. The landlord’s costs were kept to an absolute minimum.

Hornsea case:

In 2009 we were called by Ms Jordan Parker who, having purchased a garden flat in Hornsea in March 2000. The question was if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparative residencies in Hornsea with an extended lease were worth £254,200. The mid-range ground rent payable was £60 collected per annum. The lease end date was in 2077. Having 51 years left we estimated the premium to the freeholder for the lease extension to be within £43,700 and £50,600 not including legals.

Hornsea case:

In 2011 we were phoned by Mr and Mrs. W Adams who, having purchased a one bedroom flat in Hornsea in September 2012. We are asked if we could shed any light on how much (roughly) price would be for a ninety year extension to my lease. Similar flats in Hornsea with an extended lease were in the region of £215,600. The average ground rent payable was £45 invoiced monthly. The lease elapsed on 7 April 2088. Having 62 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £18,100 and £20,800 plus professional charges.