Top reasons for Heathfield lease extension

Main reasons to commence your Heathfield lease extension today:

Increase your lease and increase your Heathfield property value

Heathfield residential property held on a long lease is a wasting asset because a leaseholder merely owns the property for a period of years.

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

It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for many years ahead.

Lenders may decide not to grant a mortgage with a short lease

The propensity since the credit crunch has been for lenders to tighten lending criteria generally - this has extended to the property over which the home loan is to be granted. This has resulted in the unexpired lease term required by lenders has increased. Historically banks would lend on a lease with twenty years plus the term of the loan - typically 50 year leases but those requirements have been chipped away by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

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

Retaining our service will provide you increased control over the value of your Heathfield leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Heathfield Lease Extension Case Summaries:

Logan, Heathfield, East Sussex,

Logan was the the leasehold owner of a conversion flat in Heathfield on the market with a lease of a few days over 72 years remaining. Logan informally approached his freeholder a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £200 per annum. No ground rent would be due on a lease extension were Logan to invoke his statutory right. Logan procured expert legal guidance and secured an acceptable resolution without going to tribunal and sell the flat.

Heathfield case:

Mr Thomas Moreau moved into a studio apartment in Heathfield in January 1997. The dilemma was if we could approximate the premium would be to prolong the lease by 90 years. Comparative properties in Heathfield with a long lease were worth £255,000. The mid-range ground rent payable was £50 collected every twelve months. The lease expired in 2096. Considering the 70 years unexpired we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including fees.

Heathfield case:

Last April we were called by Mr Freddie Nelson , who bought a basement apartment in Heathfield in May 1996. We are asked if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Similar residencies in Heathfield with 100 year plus lease were in the region of £246,800. The average ground rent payable was £60 collected quarterly. The lease elapsed in 2076. Taking into account 50 years as a residual term we calculated the premium to the landlord for the lease extension to be between £44,700 and £51,600 not including professional charges.