Main reasons to commence your Hook lease extension

Why you should start your Hook lease extension today:

A Hook lease depreciates with the years remaining on the lease.

Hook leases on residential properties are gradually losing value. Where your lease has about 90 years unexpired, you should start thinking about a lease extension. If lease term is under 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Hook will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to check if you qualify. In some situations you may not be entitled. There are also strict timetables and formalities to comply with once the process is initiated so it’s wise to be guided by a conveyancing solicitor during the process.

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

It is conventional wisdom that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.

Mortgage lenders may decide not to issue a mortgage on a short lease

The propensity since the credit crunch has been for mortgage companies to tighten lending requirements across the board - this has extended to the types of security over which the home loan is to be charged. This has meant the minimum number of years remaining under the lease required by banks has increased. Historically banks would lend on a lease with 25 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 now have a minimum term of 75 years as standard.

Why use us for your lease extension in Hook?

Lease extensions in Hook can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and surveyor with experience in lease extensions.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Hook lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Hook Lease Extension Example Cases:

Jacob, Hook, Hampshire,

Jacob owned a studio flat in Hook on the market with a lease of a few days over fifty eight years remaining. Jacob informally contacted his landlord being a well known local-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Jacob to invoke his statutory right. Jacob procured expert legal guidance and was able to make a more informed decision and handle with the matter and ending up with a market value flat.

Hook case:

Last Winter we were contacted by Mr and Mrs. I Cox , who was assigned a lease of a studio flat in Hook in April 2005. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by ninety years. Comparable properties in Hook with 100 year plus lease were worth £218,000. The mid-range ground rent payable was £45 invoiced every twelve months. The lease finished in 2089. Having 63 years outstanding we calculated the premium to the freeholder for the lease extension to be between £17,100 and £19,800 plus expenses.