Why you should commence your Much Hadham lease extension

Main reasons to commence your Much Hadham lease extension today:

A Much Hadham lease depreciates with the years remaining on the lease.

It’s a harsh truth that a Much Hadham residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Much Hadham property prices.Once your lease nears 85ish years, you should start thinking about 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 80 years - otherwise a higher premium will be payable. The majority of flat owners in Much Hadham will be able to extend under the legislation; however a lawyer should be able to clarify whether you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer for the duration of the process.

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

Leasehold premises in Much Hadham with more than 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.

Mortgage lenders may not lend with a short lease

Mortgage companies do not like short residential leases. You are likely to encounter difficulties where you need to sell your flat in Much Hadham if the remaining term of your lease is less than the criteria set by the majority of banks and building societies. Different lenders have different requirements but on the whole they are looking for a minimum remaining lease term of 65 years.

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

Lease extensions in Much Hadham can be a difficult process. We recommend you obtain guidance from a lawyer and valuer with experience in this area.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Much Hadham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Much Hadham Lease Extension Case Studies:

Michael, Much Hadham, Hertfordshire,

Michael was the the leasehold owner of a 2 bedroom apartment in Much Hadham on the market with a lease of fraction over fifty eight years outstanding. Michael informally spoke with his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 annually. No ground rent would be due on a lease extension were Michael to exercise his statutory right. Michael obtained expert advice and secured satisfactory deal informally and sell the property.

Much Hadham case:

In 2011 we were approached by Mr and Mrs. R Davies who, having purchased a ground floor flat in Much Hadham in April 2005. We are asked if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Identical flats in Much Hadham with a long lease were worth £200,000. The mid-range ground rent payable was £50 billed every twelve months. The lease finished on 24 September 2103. Taking into account 77 years unexpired we estimated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including expenses.

Much Hadham case:

Dr V Murphy took over the lease of a garden flat in Much Hadham in November 2006. The question was if we could estimate the premium would likely be to extend the lease by an additional years. Similar properties in Much Hadham with 100 year plus lease were valued about £265,200. The average amount of ground rent was £65 billed per annum. The lease elapsed in 2092. Having 66 years outstanding we approximated the premium to the landlord for the lease extension to be between £15,200 and £17,600 exclusive of legals.