Main reasons to start your Hythe lease extension

Why you should commence your Hythe lease extension today:

Increase your lease and increase your Hythe property value

The market value of a leasehold property in Hythe is impacted by how long the lease has remaining. If it is near to or fewer than eighty years you should foresee problems on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. It is ideal to start the lease extension process when the lease still has 82 years unexpired so that formalities can be addressed prior to the 80 year mark. Current legislation entitles Hythe qualifying lessees to a ninety year extension added to their residual lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.

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

Leasehold properties in Hythe with more than one hundred years outstanding 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 upside in buying the reversionary interest unless savings on ground rent and service charges merit it.

Lenders will not loan monies on a short lease

Lending institutions have specific criteria when lending monies secured on leasehold homes. Some will simply refrain from lending at all once an unexpired lease term goes lower than a specified unexpired lease term. Many Banks and Building Societies will not consider property with a remaining term of less than 75 years suitable security. In addition to this being important when selling, it is also relevant if you are wanting to refinance your Hythe property.

What makes us experts in Hythe lease extensions?

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

Hythe Lease Extension Case Studies:

Bethany, Hythe, Kent,

After protracted negotiations with the landlord of her studio flat in Hythe, Bethany commenced the lease extension process just as the lease was approaching the critical eighty-year mark. The legal work was concluded in May 2009. The landlord’s fees were negotiated to a tad over 450 pounds.

Hythe case:

Last Spring we were approach by Mr Liam Michel , who purchased a first floor apartment in Hythe in October 2006. The question was if we could approximate the premium would be to extend the lease by 90 years. Identical homes in Hythe with an extended lease were valued around £216,000. The average amount of ground rent was £60 invoiced annually. The lease termination date was in 2084. Given that there were 58 years unexpired we calculated the premium to the landlord to extend the lease to be between £28,500 and £33,000 plus legals.

Hythe case:

Last Spring we were called by Mr and Mrs. G Dupont , who acquired a first floor apartment in Hythe in May 2007. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Similar residencies in Hythe with a long lease were valued around £200,000. The average ground rent payable was £50 billed per annum. The lease finished in 2104. Having 78 years left we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus costs.