Top reasons for Heathfield lease extension

Top reasons for lease extension now:

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

The only way is down when it comes to Heathfield lease terms. Heathfield leaseholds that have a residual term lower than 80 years will drop in market price at a rapid rate, and the cost to extend your lease will rise.

Heathfield property with a lease extension is almost the same value as a freehold

Leasehold properties in Heathfield with in excess of 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.

Banks and Building Societies may decide not to loan monies with a short lease

The trend since the credit crunch has been for banks to tighten lending requirements generally - this has extended to the types of security over which the mortgage is to be charged. This has resulted in the unexpired lease term required by lenders has increased. Historically banks were content with twenty years plus the term of the loan - typically 50 year leases but those requirements have been chipped away by the requirement for longer and longer leases - many now have a minimum term of 75 years as standard.

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

The lawyers that we work with procure Heathfield 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.

Heathfield Lease Extension Example Cases:

Gabriel, Heathfield, East Sussex,

Gabriel was the the leasehold owner of a studio apartment in Heathfield being sold with a lease of a little over 72 years unexpired. Gabriel informally spoke with his freeholder being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Gabriel to invoke his statutory right. Gabriel obtained expert advice and was able to make an informed judgement and deal with the matter and readily saleable.

Heathfield case:

In 2012 we were contacted by Mr and Mrs. O André who, having was assigned a lease of a garden flat in Heathfield in October 2007. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparative flats in Heathfield with 100 year plus lease were worth £235,200. The average amount of ground rent was £45 collected per annum. The lease finished on 23 January 2092. Having 66 years remaining we estimated the premium to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of fees.

Heathfield case:

In 2014 we were e-mailed by Mr and Mrs. T González who, having took over the lease of a garden apartment in Heathfield in July 2008. The question was if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparative properties in Heathfield with an extended lease were in the region of £280,000. The mid-range ground rent payable was £55 billed quarterly. The lease came to a finish on 11 May 2103. Considering the 77 years left we estimated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of costs.