Why you should start your Hull lease extension

Why you should commence your Hull lease extension today:

Increase your lease and increase your Hull property value

With a long leasehold premises in Hull, you are actually buying a right to reside in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially once there are less than 80 years remaining. Residents in Hull with a lease nearing 81 years remaining should seriously think of extending it without delay. Once the lease term has below 80 years remaining, under the relevant Act the freeholder can calculate and demand a larger amount, based on a technical calculation, strangely termed as “marriage value” which is due.

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

It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.

Lending institutions may not grant a mortgage on a short lease

Whether or not the lease is be regarded as a short lease depends on the specific mortgage company, yet lending institutions start to get nervous at around 75 years. This will cause difficulties once you come to market or refinance your flat as it will be practically unmortgageable. Even though you might have no immediate plan to sell but when you do your buyer will have to hold off for two years before they can exercise the right to a an extension to the lease.

What makes us experts in Hull lease extensions?

Engaging our service will provide you enhanced control over the value of your Hull 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 have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Hull Lease Extension Case Summaries:

Francesca, Hull, East Yorkshire,

Subsequent to unsuccessful negotiations with the landlord of her leasehold flat in Hull, Francesca initiated the lease extension process just as her lease was coming close to the all-important eighty-year mark. The lease extension was finalised in November 2007. The landlord’s costs were kept to an absolute minimum.

Hull case:

Last November we were called by Dr B Davis , who moved into a one bedroom apartment in Hull in September 2001. The question was if we could estimate the price would likely be for a ninety year lease extension. Identical properties in Hull with an extended lease were worth £280,000. The mid-range ground rent payable was £45 billed monthly. The lease elapsed on 24 April 2096. Having 70 years remaining we estimated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of fees.

Hull case:

Dr Louise François acquired a studio apartment in Hull in September 2006. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by a further 90 years. Comparable homes in Hull with 100 year plus lease were worth £223,400. The mid-range ground rent payable was £60 collected quarterly. The lease lapsed on 21 October 2085. Having 59 years outstanding we calculated the compensation to the landlord for the lease extension to be within £27,600 and £31,800 plus legals.