Why you should commence your Heathfield lease extension

Top reasons for lease extension now:

Increase your lease and increase your Heathfield property value

Heathfield leases on residential properties are gradually losing value. Where your lease has approximately ninety years left, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease dips below this level then you start incurring an additional element called marriage value. Leasehold owners in Heathfield will mostly be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process has commenced so it’s best to be guided by a conveyancing solicitor during the process.

An extended lease is almost the same value as a freehold

It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.

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

The trend since 2008 has been for mortgage companies to tighten lending requirements generally - this has extended to the types of security over which the mortgage is to be granted. This has meant the unexpired lease term required by banks has increased. In the past lenders would lend on a lease with twenty years plus the term of the loan - routinely fifty year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many use a minimum term of 75 years as standard.

Why use us for your lease extension in Heathfield?

Using our service gives you better 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 conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Heathfield Lease Extension Case Summaries:

Adam, Heathfield, East Sussex,

Adam owned a 2 bedroom apartment in Heathfield being marketed with a lease of just over sixty years unexpired. Adam on an informal basis contacted his freeholder 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 a new rent initially set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Adam to exercise his statutory right. Adam procured expert legal guidance and secured satisfactory resolution without going to tribunal and readily saleable.

Heathfield case:

Mr Muhammad Baker acquired a studio flat in Heathfield in November 2010. The dilemma was if we could approximate the price could be for a 90 year extension to my lease. Comparative residencies in Heathfield with 100 year plus lease were in the region of £270,000. The average ground rent payable was £55 billed yearly. The lease finished on 13 October 2100. Considering the 74 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.

Heathfield case:

In 2012 we were called by Mr and Mrs. C Hernández who, having was assigned a lease of a one bedroom flat in Heathfield in June 2001. The dilemma was if we could estimate the premium could be for a ninety year lease extension. Comparative premises in Heathfield with 100 year plus lease were in the region of £166,400. The mid-range amount of ground rent was £60 collected yearly. The lease expired in 2080. Having 54 years outstanding we approximated the premium to the landlord for the lease extension to be within £32,300 and £37,400 not including fees.