Top reasons for Highcliffe lease extension

Why you should commence your Highcliffe lease extension today:

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

Highcliffe leases on residential properties are gradually losing value. Where your lease has in the region of ninety years left, you should start considering the need for a lease extension. If lease term dips under 80 years, you will then have to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Highcliffe will usually qualify for a lease extension; however a solicitor should be able confirm your eligibility. In certain cases you may not be entitled. There are prescribed timetables and formalities to follow once the process has commenced so it’s sensible to be guided by a conveyancer during the process.

An extended lease has roughly the same value as a freehold

Leasehold residencies in Highcliffe with more than 100 years outstanding 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 property. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.

Banks and Building Societies may not loan monies on a short lease

Most high street banks are tightening their criteria and many now require flats to have a minimum of 60 if not 70 years remaining once the mortgage has expired. As a number of flats in Highcliffe were created in the 1950s, 1960s and 1970s as a result many now need to be extended if they wish to get a mortgage.

What makes us experts in Highcliffe lease extensions?

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

Highcliffe Lease Extension Example Cases:

Zoe, Highcliffe, Dorset,

In the wake of 9 months of protracted negotiations with the freeholder of her leasehold apartment in Highcliffe, Zoe commenced the lease extension process as the eighty year threshold was rapidly approaching. The transaction completed in July 2012. The landlord’s charges were kept to an absolute minimum.

Highcliffe case:

In 2009 we were phoned by Dr G Nelson who, having purchased a purpose-built flat in Highcliffe in May 2010. The dilemma was if we could estimate the premium would likely be for a 90 year lease extension. Identical homes in Highcliffe with a long lease were in the region of £285,000. The average amount of ground rent was £55 collected yearly. The lease elapsed on 3 February 2105. Considering the 79 years remaining we approximated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 plus costs.

Highcliffe case:

In 2012 we were phoned by Mr and Mrs. O Patel who, having was assigned a lease of a ground floor apartment in Highcliffe in November 2007. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Comparable residencies in Highcliffe with 100 year plus lease were valued about £198,400. The average amount of ground rent was £65 collected per annum. The lease terminated in 2085. Having 59 years left we approximated the compensation to the freeholder for the lease extension to be within £21,900 and £25,200 plus professional charges.