Why you should commence your Hook lease extension

Main reasons to start your Hook lease extension today:

Increase your lease and increase your Hook property value

The market value of a leasehold property in Hook depends on how many years the lease has remaining. If it is near to or less than eighty years you should expect problems on re-sale, so it is recommended to arrange for a lease extension ahead of purchasing. Ideally one should start the process of extending the lease is when a lease still has 82 years to run so that all matters can be finalised ahead of the 80 year mark. Leasehold Reform legislation enables Hook qualifying lessees to a ninety year extension added to their residual lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.

Hook property with a lease extension has roughly the same value as a freehold

It is generally considered that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the property will be worth the same as a freehold for decades to come.

Banks and Building Societies will not lend on a short lease

Lenders are tightening their criteria and a meaningful number now require flats to have at least 60 if not 70 years left at the end of the mortgage. Given that many flats in Hook were created in the 1950s, 1960s and 1970s this means many now need to be extended if they if they are to be mortgageable.

What makes us experts in Hook lease extensions?

The conveyancers that we work with handle Hook 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 conveyancer we work with provide it.

Hook Lease Extension Example Cases:

Liam, Hook, Hampshire,

Liam owned a high value flat in Hook on the market with a lease of a few days over 61 years unexpired. Liam informally contacted his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Liam to exercise his statutory right. Liam procured expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.

Hook case:

Last Summer we were phoned by Dr W Gómez , who moved into a one bedroom flat in Hook in November 2000. We are asked if we could estimate the premium could be to prolong the lease by a further 90 years. Comparative premises in Hook with 100 year plus lease were valued about £261,600. The average amount of ground rent was £60 invoiced annually. The lease lapsed in 2078. Given that there were 52 years remaining we approximated the premium to the landlord to extend the lease to be within £39,000 and £45,000 not including fees.