Why you should start your Charing Cross lease extension

Why you should commence your Charing Cross lease extension today:

A Charing Cross leasehold property depreciates with the years remaining on the lease.

Charing Cross leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now which permits qualifying Charing Cross residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Charing Cross you must check if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension sharply increases as part of the premium you pay is what is known as a marriage value

An extended lease has roughly the same value as a freehold

Leasehold residencies in Charing Cross with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.

Banks and Building Societies may not grant a mortgage on a short lease

Most mortgage companies will not lend on a lease with less than seventy years remaining - although this varies from lender to lender. A buyer will likely encounter difficulties in obtaining a mortgage and this will result in your Charing Cross property being difficult to sell or remortgage.

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

Retaining our service gives you better control over the value of your Charing Cross leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Charing Cross Lease Extension Example Cases:

Jude, Charing Cross, London

Last October Jude, came seriously near to the 80-year threshold with the lease on his first floor apartment in Charing Cross. Having purchased his flat 18 years previously, the lease term was of little concern. As luck would have it, he recognised he would soon be paying an escalated premium for Extending the lease. Jude extended the lease at the eleventh hour last August. Jude and the freeholder via the management company eventually settled on a premium of £5,000 . If he had missed the deadline, the sum would have escalated by at least £975.

Charing Cross case:

Mr and Mrs. K Rogers moved into a purpose-built flat in Charing Cross in May 1999. The dilemma was if we could shed any light on how much (roughly) price would be to extend the lease by an additional years. Identical properties in Charing Cross with a long lease were in the region of £171,800. The average ground rent payable was £55 billed quarterly. The lease ended on 20 July 2074. Considering the 50 years unexpired we approximated the compensation to the landlord for the lease extension to be between £33,300 and £38,400 plus costs.