Top reasons for Hainault lease extension

Main reasons to commence your Hainault lease extension today:

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

There is no doubt about it a leasehold property in Hainault is a wasting asset as a result of the shortening lease. If the lease has, in excess of 100 years remaining then this decrease may be fractional however there will become a stage when a lease has under than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should consider extending without delay. Most flat owners in Hainault will meet the qualifying criteria; that being said a conveyancer can advise whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.

Hainault property with a lease extension has roughly the same value as a freehold

Leasehold properties in Hainault with in excess of one hundred years left 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 to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.

Banks and Building Societies may not finance a property with a short lease

Almost all banks and building societies will be unwilling to lend on a lease with under seventy years unexpired - although this varies between mortgage companies. A buyer will undoubtedly encounter difficulties in obtaining a mortgage and this will result in your Hainault property becoming difficult to dispose of or refinance.

What makes us experts in Hainault lease extensions?

The lawyers 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 conveyancer we work with provide it.

Hainault Lease Extension Example Cases:

Reuben, Hainault, North East London,

Reuben owned a studio apartment in Hainault being sold with a lease of a few days over sixty years outstanding. Reuben on an informal basis spoke with his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £50 per annum. No ground rent would be due on a lease extension were Reuben to exercise his statutory right. Reuben obtained expert advice and was able to make a more informed decision and deal with the matter and ending up with a market value flat.

Hainault case:

Mrs E Hill completed a studio apartment in Hainault in May 2008. We are asked if we could approximate the premium could be to prolong the lease by a further 90 years. Comparative homes in Hainault with a long lease were worth £250,400. The average amount of ground rent was £65 invoiced monthly. The lease termination date was in 2090. Given that there were 64 years left we approximated the premium to the landlord for the lease extension to be between £19,000 and £22,000 not including legals.