Main reasons to start your Hyde Park lease extension

Why you should start your Hyde Park lease extension today:

Increase your lease and increase your Hyde Park property value

Unfortunately that a Hyde Park residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Hyde Park property prices.Where your lease has approximately ninety years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than eighty years - otherwise a higher amount will be payable. Most leasehold owners in Hyde Park will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer for the duration of the formalities.

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

It is generally accepted that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.

Lenders will not lend on a short lease

The propensity since the credit crunch has been for mortgage companies to tighten lending requirements generally - this has extended to the property over which the mortgage is to be granted. This has meant the minimum number of years remaining under the lease required by lenders has increased. In the past mortgage companies would lend on a lease with twenty years plus the term of the loan - routinely fifty year leases but those requirements have been chipped away by the requirement for lengthy leases - many now have a minimum term of 75 years as standard.

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

Using our service gives you better control over the value of your Hyde Park leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Hyde Park Lease Extension Example Cases:

Stanley, Hyde Park, Leeds

Twenty four months ago Stanley, started to get close to the 80-year threshold with the lease on his garden flat in Hyde Park. Having bought his home two decades ago, the lease term was of minimal interest. Luckily, he realised he needed to take steps soon on Extending the lease. Stanley arranged for a lease extension just ahead of time last September. Stanley and the freeholder via the management company eventually agreed on a premium of £5,000 . If the lease had dipped below 80 years, the sum would have escalated by at least £900.

Hyde Park case:

In 2009 we were e-mailed by Mr and Mrs. S Brown who, having acquired a first floor flat in Hyde Park in April 2010. The dilemma was if we could estimate the price would likely be to extend the lease by ninety years. Identical homes in Hyde Park with 100 year plus lease were worth £235,200. The mid-range amount of ground rent was £45 billed yearly. The lease came to a finish on 22 July 2092. Given that there were 66 years remaining we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including professional charges.

Hyde Park case:

Last Winter we were approach by Mr and Mrs. S Cook , who took over the lease of a studio flat in Hyde Park in July 1999. The dilemma was if we could approximate the premium would likely be to prolong the lease by an additional years. Identical premises in Hyde Park with an extended lease were valued around £280,000. The average amount of ground rent was £55 collected every twelve months. The lease concluded in 2103. Considering the 77 years outstanding we estimated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 plus professional charges.