Top reasons for Heathfield lease extension

Top reasons for lease extension now:

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

Heathfield leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Heathfield tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Heathfield you really ought to see if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value

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

It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for many years in the future.

Lending institutions will not issue a mortgage on a short lease

Nearly all banks and building societies require a lengthy amount of time remaining on a leasehold residence before they will contemplate it as adequate security. Regardless of whether you need a mortgage, you should be conscious that it is likely that someone wishing to acquire your property in the future might well do, so where they can't secure a mortgage, then the value of your property will likely suffer. In the last decade many banks and building societies have increased the required minimum lease length that they are willing to lend on

What makes us experts in Heathfield lease extensions?

Irrespective of whether you are a tenant or a landlord in Heathfield,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Heathfield valuers.

Heathfield Lease Extension Example Cases:

Francesca, Heathfield, East Sussex,

Subsequent to unsuccessful correspondence with the landlord of her studio flat in Heathfield, Francesca initiated the lease extension process as the eighty year threshold was rapidly coming. The transaction was finalised in May 2011. The freeholder’s costs were restricted to less than 700 pounds.

Heathfield case:

Last month we were e-mailed by Mrs R Nelson , who bought a one bedroom flat in Heathfield in October 2008. The question was if we could estimate the premium would be to extend the lease by ninety years. Comparable properties in Heathfield with an extended lease were in the region of £254,200. The average amount of ground rent was £60 collected per annum. The lease terminated in 2077. Considering the 51 years remaining we calculated the compensation to the freeholder to extend the lease to be between £43,700 and £50,600 plus expenses.

Heathfield case:

In 2012 we were contacted by Dr Edward Lambert who, having took over the lease of a one bedroom apartment in Heathfield in October 2012. We are asked if we could estimate the price could be for a ninety year extension to my lease. Comparative homes in Heathfield with 100 year plus lease were in the region of £215,600. The mid-range amount of ground rent was £45 invoiced yearly. The lease lapsed on 9 November 2088. Given that there were 62 years left we calculated the compensation to the landlord for the lease extension to be within £18,100 and £20,800 plus professional charges.