Why you should start your Hook lease extension

Why you should start your Hook lease extension today:

Increase your lease and increase your Hook property value

Unfortunately that a Hook residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Hook property prices.Where your lease has approximately 90 years left, you should start considering a lease extension. If lease term dips under eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most leasehold owners in Hook will be able to extend under the legislation; however a lawyer will be able to clarify whether you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer from beginning to end of the process.

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

It is generally accepted that a residential leasehold with over 100 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 equivalent in value to a freehold for many years ahead.

Mortgage lenders may decide not to grant a mortgage with a short lease

The propensity since the credit crunch has been for mortgage companies to tighten lending criteria generally - this has extended to the types of security over which the home loan is to be charged. This has resulted in the unexpired lease term required by banks has increased. Historically banks would lend on a lease with twenty years plus the term of the loan - typically 50 year leases but those requirements evolved by the requirement for lengthy leases - many use a minimum term of 75 years as standard.

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

Lease extensions in Hook can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and valuer 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 procuring 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 Case Studies:

Toby, Hook, Hampshire

Last Summer Toby, came precariously near to the 80-year threshold with the lease on his basement flat in Hook. In buying his property twenty years previously, the length of the lease was of minimal significance. by good luck, he recognised he needed to take action soon on Extending the lease. Toby arranged for a lease extension at the eleventh hour last August. Toby and the freeholder via the managing agents in the end settled on a premium of £5,000 . If he had missed the deadline, the premium would have increased by at least £1,075.

Hook case:

In 2013 we were approached by Dr Sarah King who, having purchased a ground floor flat in Hook in July 2011. The question was if we could estimate the price would be to prolong the lease by an additional years. Comparative premises in Hook with an extended lease were valued about £270,000. The mid-range ground rent payable was £55 billed annually. The lease termination date was in 2101. Given that there were 75 years outstanding we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of costs.