Top reasons for Heathfield lease extension

Why you should start your Heathfield lease extension today:

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

As the length of the unexpired term of a Heathfield residential lease decreases so does its value and therefore the value of your property. If the residual term has, over 100 years to run then this decrease may be fractional however there will become a point in time when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should consider extending without delay. Many flat owners in Heathfield will qualify for this right; nevertheless a lawyer should be able to advise whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.

An extended lease has roughly the same value as a freehold

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

Mortgage lenders will not loan monies with a short lease

Many banks and building societies insist on a lengthy amount of time remaining on any leasehold residence before they will contemplate it as adequate security. Even if you don't require a mortgage, you should be mindful that it is reasonable to assume that someone wishing to buy your property in the future might well do, so in the event that they are not able to secure a mortgage, then the value of your property will likely be adversely impacted. Since 2008 the majority of banks and building societies have increased the required minimum lease length that they are willing to lend on

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

The lawyers that we work with undertake 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 conveyancing solicitor we work with provide it.

Heathfield Lease Extension Case Summaries:

Charlotte, Heathfield, East Sussex,

Trailing lengthy negotiations with the freeholder of her studio apartment in Heathfield, Charlotte initiated the lease extension process as the eighty year threshold was fast approaching. The transaction was finalised in October 2006. The landlord’s costs were kept to an absolute minimum.

Heathfield case:

Mr and Mrs. D Howard bought a newly refurbished flat in Heathfield in April 2000. The question was if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Comparative properties in Heathfield with a long lease were valued around £215,600. The average ground rent payable was £45 billed annually. The lease terminated on 2 June 2088. Considering the 62 years left we estimated the premium to the landlord for the lease extension to be between £18,100 and £20,800 plus expenses.

Heathfield case:

In 2012 we were contacted by Mr and Mrs. O Torres who, having moved into a one bedroom flat in Heathfield in February 2003. We are asked if we could estimate the premium would likely be to extend the lease by ninety years. Comparable homes in Heathfield with 100 year plus lease were worth £265,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease ended in 2099. Given that there were 73 years remaining we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus expenses.