Top reasons for Hainault lease extension

Top reasons for lease extension now:

A Hainault leasehold property depreciates with the years remaining on the lease.

Hainault leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. It is the case that most Hainault tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Hainault you would be well advised to see if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value

An extended lease has roughly the same value as a freehold

It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.

Banks and Building Societies will not finance a property on a short lease

Banks and building societies will not lend on short residential leases. You are likely to experience problems if you need to sell your flat in Hainault if the unexpired lease term is below the criteria set by the majority of lenders. Different mortgage companies have different requirements but in the main they are looking for a minimum remaining lease term of seventy years.

Why use us for your lease extension in Hainault?

The conveyancers that we work with handle Hainault 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 conveyancing solicitor we work with provide it.

Hainault Lease Extension Example Cases:

Natalie, Hainault, North East London,

Following protracted discussions with the freeholder of her first floor flat in Hainault, Natalie started the lease extension process just as her lease was coming close to the crucial eighty-year deadline. The legal work was concluded in April 2007. The freeholder’s charges were negotiated to approximately 600 GBP.

Hainault case:

In 2013 we were phoned by Mr Y Green who, having bought a one bedroom flat in Hainault in June 1998. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by an additional years. Comparative premises in Hainault with a long lease were valued around £206,200. The mid-range ground rent payable was £55 collected monthly. The lease terminated on 28 November 2081. Having 56 years unexpired we estimated the premium to the landlord to extend the lease to be within £31,400 and £36,200 exclusive of expenses.