Top reasons for Little Hampton lease extension

Top reasons for lease extension now:

A Little Hampton lease depreciates with the years remaining on the lease.

The only way is down when it comes to Little Hampton lease terms. Little Hampton properties that have a lease term fewer than 80 years will de-escalate in market price even faster, and the cost of extending your lease will increase.

An extended lease is almost the same value as a freehold

Leasehold properties in Little Hampton with more than one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.

Lending institutions may not grant a mortgage on a short lease

The propensity since the credit crunch has been for lenders to tighten lending criteria generally - this has extended to the types of security over which the home loan is to be granted. This has resulted in the unexpired lease term required by banks has increased. In the past banks were content with twenty years plus the term of the loan - routinely fifty year leases but those requirements evolved by the requirement for longer and longer leases - many use a minimum term of 75 years as a prerequisite.

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

The lawyers that we work with undertake Little Hampton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.

Little Hampton Lease Extension Example Cases:

Gabriel, Little Hampton, Worcestershire,

Gabriel was the the leasehold owner of a conversion flat in Little Hampton on the market with a lease of fraction over 61 years unexpired. Gabriel on an informal basis approached his landlord a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £100 per annum. No ground rent would be due on a lease extension were Gabriel to invoke his statutory right. Gabriel obtained expert legal guidance and secured satisfactory deal informally and ending up with a market value flat.

Little Hampton case:

In 2012 we were contacted by Mr and Mrs. I Cox who, having completed a recently refurbished flat in Little Hampton in June 1998. The question was if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Comparative residencies in Little Hampton with a long lease were worth £255,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease ran out in 2096. Taking into account 70 years unexpired we calculated the premium to the landlord to extend the lease to be within £10,500 and £12,000 plus costs.

Little Hampton case:

Last Summer we were called by Mrs H Young , who moved into a purpose-built flat in Little Hampton in July 2002. The question was if we could shed any light on how much (approximately) price would be to extend the lease by an additional years. Similar properties in Little Hampton with a long lease were worth £246,800. The mid-range amount of ground rent was £60 collected monthly. The lease concluded on 16 July 2076. Considering the 50 years left we estimated the compensation to the freeholder for the lease extension to be within £44,700 and £51,600 plus expenses.