Main reasons to commence your Hermitage lease extension

Main reasons to commence your Hermitage lease extension today:

Increase your lease and increase your Hermitage property value

For anyone whose Hermitage flat is held on a long lease, our message is clear – if nothing is done, your property will eventually revert to the freeholder, leaving you empty-handed. The shorter the lease the less it is worth and the more it will cost to obtain a lease extension.

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

It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the property will be worth the same as a freehold for many years ahead.

Lenders may not lend with a short lease

Lenders do not like short residential leases. You are likely to experience problems where you need to sell your flat in Hermitage if the unexpired lease term is under the criteria set by most banks and building societies. Different lenders have different requirements but on the whole they are looking for a minimum remaining lease term of seventy years.

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

The lawyers that we work with undertake Hermitage 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.

Hermitage Lease Extension Example Cases:

Eliot, Hermitage, Berkshire

14 months ago Eliot, came very close to the 80-year mark with the lease on his ground floor apartment in Hermitage. In buying his home 19 years ago, the length of the lease was of little significance. Luckily, he noticed he would imminently be paying an escalated premium for Extending the lease. Eliot arranged for a lease extension just under the wire last September. Eliot and the landlord who owned the flat above eventually agreed on an amount of £5,000 . If the lease had dropped below eighty years, the figure would have escalated by at least £850.

Hermitage case:

In 2009 we were phoned by Mr Rory Bonnet who, having purchased a basement flat in Hermitage in November 2005. The question was if we could shed any light on how much (roughly) premium would be to prolong the lease by an additional years. Similar flats in Hermitage with an extended lease were worth £223,400. The average amount of ground rent was £60 billed annually. The lease concluded on 17 September 2085. Considering the 59 years unexpired we estimated the premium to the landlord to extend the lease to be between £27,600 and £31,800 not including fees.

Hermitage case:

In 2010 we were contacted by Dr Muhammad Brown who, having completed a one bedroom apartment in Hermitage in January 2008. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Identical residencies in Hermitage with a long lease were worth £205,000. The mid-range amount of ground rent was £50 collected monthly. The lease termination date was on 27 November 2105. Taking into account 79 years remaining we approximated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 not including fees.