Why you should commence your 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 the lease becomes more expensive. It is the case that most Hainault tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Hainault you really ought to see if your lease has between 70 and ninety years remaining. There are compelling reasons why a Hainault flat owner with a lease having around eighty years remaining should take steps to ensure that a lease extension is put in place without delay

An extended lease has roughly the same value as a freehold

Leasehold residencies in Hainault with over one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.

Banks and Building Societies may not lend with a short lease

Lenders are making their criteria more stringent and many now expect flats to have at least 60 if not 70 years left at the end of the mortgage. Considering a number of flats in Hainault were created in the 1950s, 1960s and 1970s as a result many now need to be extended if they wish to get a mortgage.

What makes us experts in Hainault lease extensions?

The lawyers that we work with undertake 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 lawyer we work with provide it.

Hainault Lease Extension Case Studies:

Stanley, Hainault, North East London,

Stanley was the the leasehold owner of a high value flat in Hainault being marketed with a lease of just over 72 years left. Stanley on an informal basis spoke with 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 annually. No ground rent would be payable on a lease extension were Stanley to invoke his statutory right. Stanley obtained expert advice and secured satisfactory deal informally and readily saleable.

Hainault case:

Last Spring we were contacted by Mr Callum Laurent , who moved into a one bedroom apartment in Hainault in February 2009. We are asked if we could approximate the premium would be for a ninety year lease extension. Comparable homes in Hainault with a long lease were worth £191,400. The average amount of ground rent was £55 billed yearly. The lease finished in 2079. Taking into account 54 years as a residual term we approximated the premium to the landlord to extend the lease to be between £34,200 and £39,600 plus costs.