Top reasons for Pound Hill lease extension

Top reasons for lease extension now:

Increase your lease and increase your Pound Hill property value

Pound Hill leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Most owners of residential leasehold property in Pound Hill enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Pound Hill you really ought to see if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value

An extended lease is almost the same value as a freehold

It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for decades to come.

Lending institutions will not grant a mortgage on 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 cause difficulties as and when you come to dispose of or refinance your flat as it will be practically unmortgageable. You might have no immediate plan to sell but when you do your purchaser must hold off for two years before they can initiate the legal procedures for an extension to the lease.

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

The conveyancers that we work with undertake Pound Hill 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 lawyer we work with provide it.

Pound Hill Lease Extension Case Studies:

Gabriel, Pound Hill, West Sussex,

Gabriel owned a conversion flat in Pound Hill being sold with a lease of a little over 72 years unexpired. Gabriel on an informal basis contacted his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £100 per annum. Ordinarily, ground rent would not be due on a lease extension were Gabriel to exercise his statutory right. Gabriel obtained expert legal guidance and secured satisfactory resolution without resorting to tribunal and readily saleable.

Pound Hill case:

In 2012 we were called by Mrs G Nelson who, having moved into a basement flat in Pound Hill in November 1995. The dilemma was if we could approximate the price would be to extend the lease by a further 90 years. Comparable premises in Pound Hill with a long lease were worth £267,600. The average ground rent payable was £65 billed quarterly. The lease terminated in 2093. Given that there were 67 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £14,300 and £16,400 plus expenses.

Pound Hill case:

In 2013 we were e-mailed by Dr I Davis who, having took over the lease of a ground floor apartment in Pound Hill in September 1996. The question was if we could approximate the compensation to the landlord would be for a ninety year lease extension. Comparative premises in Pound Hill with 100 year plus lease were valued around £201,200. The mid-range ground rent payable was £55 billed annually. The lease lapsed in 2082. Given that there were 56 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 plus fees.