Why you should commence your Hook lease extension

Top reasons for lease extension now:

Increase your lease and increase your Hook property value

There is no doubt about it a leasehold property in Hook is a wasting asset as a result of the shortening lease. Where the residual term has, beyond 125 years remaining then this decrease may be negligible however there will become a point in time when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should extend the lease sooner as opposed to later. Most flat owners in Hook will qualify for this right; however a lawyer can confirm if you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.

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

Leasehold residencies in Hook with in excess of one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.

Mortgage lenders may decide not to loan monies with a short lease

Almost all banks and building societies will not grant a mortgage on a lease with under seventy years unexpired - although this varies from lender to lender. A purchaser will likely find it difficult in obtaining a mortgage and this could result in your Hook property being difficult to sell or refinance.

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

Engaging our service will provide you enhanced control over the value of your Hook leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Hook Lease Extension Example Cases:

Owen, Hook, Hampshire,

Owen was the the leasehold owner of a high value flat in Hook on the market with a lease of a few days over 59 years unexpired. Owen on an informal basis contacted his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 yearly. Ordinarily, ground rent would not be due on a lease extension were Owen to exercise his statutory right. Owen procured expert legal guidance and was able to make an informed judgement and handle with the matter and sell the property.

Hook case:

Last Autumn we were approach by Dr O Ramírez , who purchased a studio flat in Hook in May 2012. The dilemma was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Comparable flats in Hook with an extended lease were in the region of £166,400. The mid-range ground rent payable was £60 invoiced per annum. The lease ran out on 20 March 2079. Considering the 54 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £32,300 and £37,400 plus expenses.