Main reasons to commence your Hulme lease extension

Main reasons to start your Hulme lease extension today:

Increase your lease and increase your Hulme property value

Hulme leases on domestic deteriorating in value. if your lease has about ninety years left, you should start considering the need for a lease extension. If lease term is under eighty years, you will then have to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Hulme will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to check if you qualify. In certain circumstances you may not qualify. There are also strict timetables and steps to follow once the process is triggered so it’s prudent to be guided by a lawyer during the process.

An extended lease has roughly the same value as a freehold

Leasehold residencies in Hulme with in excess of 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 upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.

Lenders will not loan monies with a short lease

The definition of a short lease varies by mortgage company, yet mortgage lenders start to get jittery at around 75 years. This may be problematic as and when you need to dispose of or refinance your flat as it will be practically unmortgageable. You might not have an immediate intention to sell but when you do your buyer will need to hold off for two years before they can initiate the legal procedures for a lease extension.

Get in touch with one of our Hulme lease extension solicitors or enfranchisement solicitors

Irrespective of whether you are a tenant or a landlord in Hulme,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Hulme valuers.

Hulme Lease Extension Case Studies:

Jayden, Hulme, Greater Manchester

Last year Jayden, came perilously near to the eighty-year mark with the lease on his purpose- built flat in Hulme. In buying his property 19 years previously, the length of the lease was of minimal bearing. Thankfully, he noticed he needed to take steps soon on a lease extension. Jayden was able to extend his lease just in the nick of time in May. Jayden and the landlord who owned the flat above eventually settled on an amount of £5,000 . If the lease had slid below 80 years, the premium would have gone up by at least £975.

Hulme case:

Mr and Mrs. T Clarke owned a one bedroom apartment in Hulme in October 2001. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by a further 90 years. Comparable homes in Hulme with an extended lease were valued around £223,400. The mid-range amount of ground rent was £60 billed quarterly. The lease expired on 17 January 2085. Having 59 years left we calculated the compensation to the freeholder for the lease extension to be between £27,600 and £31,800 plus professional charges.

Hulme case:

Last Autumn we were contacted by Mr and Mrs. H Evans , who took over the lease of a one bedroom flat in Hulme in February 2009. We are asked if we could estimate the price could be to extend the lease by ninety years. Identical properties in Hulme with a long lease were valued about £205,000. The mid-range ground rent payable was £50 collected monthly. The lease expired on 19 January 2105. Taking into account 79 years remaining we estimated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of professional charges.