Main reasons to commence your Hove lease extension

Why you should start your Hove lease extension today:

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

The market value of a leasehold property in Hove is impacted by how long the lease has remaining. If it is near to or fewer than eighty years you should expect difficulties on re-sale, so it is recommended to arrange for the lease to be extended before buying. It is preferable to commence the process of extending the lease is when the lease still has 82 years unexpired so that all matters can be addressed well before the 80 year threshold. Statute entitles Hove qualifying lessees to a ninety 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 purpose of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.

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

Leasehold residencies in Hove with over 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.

Lending institutions may not lend on a short lease

The definition of a short lease varies by mortgage company, yet banks and building societies start to become nervous at around 75 years. This will be problematic when you need to sell or remortgage your property as it will be practically unmortgageable. You might have no imminent intention to sell but when you do your buyer must wait two years before they can exercise the right to a an extension to the lease.

What makes us experts in Hove lease extensions?

Retaining our service gives you better control over the value of your Hove leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Hove Lease Extension Case Studies:

Laura, Hove, East Sussex,

Off the back of protracted negotiations with the landlord of her two bedroom apartment in Hove, Laura commenced the lease extension process as the eighty year threshold was fast advancing. The lease extension was concluded in May 2005. The landlord’s costs were kept to an absolute minimum.

Hove case:

In 2009 we were contacted by Mr and Mrs. S Gray who, having bought a one bedroom apartment in Hove in July 2010. The question was if we could estimate the price could be to extend the lease by an additional years. Similar properties in Hove with a long lease were valued about £196,400. The average ground rent payable was £55 invoiced every twelve months. The lease concluded in 2080. Considering the 54 years outstanding we calculated the premium to the freeholder for the lease extension to be between £35,200 and £40,600 not including professional charges.

Hove case:

Last Spring we were contacted by Mr Ibrahim Ramírez , who moved into a garden flat in Hove in July 2001. We are asked if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Similar properties in Hove with a long lease were worth £295,000. The average ground rent payable was £45 billed monthly. The lease came to a finish in 2100. Taking into account 74 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of legals.