Top reasons for Chelmsford lease extension
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<h3> Top reasons for lease extension now:
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Increase your lease and increase your <a href="http://www.lendermonitor.com/conveyancing/loc/chelmsford">Chelmsford</a> property value </h4>
<p> The value of Chelmsford leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate substantially once the remaining term is less than eighty years
<h4>Chelmsford property with a lease extension is almost the same value as a freehold</h4>
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Leasehold properties in Chelmsford with in excess of one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it. <h4>Lending institutions will not lend with a short lease</h4> Mortgage companies are really clamping down as regards to properties in Chelmsford with short leases. For example you may find that their lending requirements are stricter and that they adjust interest rates depending on how many years are left on the lease. Some may even refrain from lending completely, so where you wanted to sell, your remaining options would be to find a cash buyer, or try your luck at auction thus limiting the number of potential buyers.
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<tr><th>Lender</th>
<th> Requirement
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<td>Accord Mortgages</td>
<td> 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower.
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<td>Chelsea Building Society</td>
<td> 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower.
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<td>Halifax</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>Leeds Building Society</td>
<td> 85 years remaining from the start of the mortgage.
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<td>TSB</td>
<td> Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.
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<h4> Get in touch with one of our Chelmsford lease extension solicitors or enfranchisement solicitors
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<p> Using our service will provide you enhanced control over the value of your Chelmsford leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell.
The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions. <h4>
Chelmsford Lease Extension Example Cases:
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<h5> Ben, Chelmsford, Essex</h5>
<p> During the course of the last few months Ben, started to get close to the eighty-year mark with the lease on his garden apartment in Chelmsford. Having bought his property twenty years previously, the length of the lease was of little significance. As luck would have it, he recognised he would soon be paying an escalated premium for Extending the lease. Ben was able to extend his lease at the eleventh hour last May. Ben and the freeholder via the management company eventually settled on sum of £5,000 . If he not met the deadline, the figure would have gone up by at least £950.
<h5>Chelmsford case:</h5>
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Last Christmas we were e-mailed by Mr Lucas Collins , who
acquired a first floor flat in Chelmsford in June 1997. We are asked if we could approximate the price would be to prolong the lease by ninety years. Similar flats in Chelmsford with a long lease were in the region of £237,600. The mid-range amount of ground rent was £45 billed annually. The lease ran out on 3 August 2093. Given that there were 67 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £11,400 and £13,200 plus fees.
<h5>Chelmsford case:</h5>
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Last Winter we were contacted by Mr and Mrs. D Rivera , who
completed a garden flat in Chelmsford in March 2010. We are asked if we could approximate the price would likely be to extend the lease by an additional years. Similar flats in Chelmsford with a long lease were valued about £280,000. The average amount of ground rent was £55 invoiced quarterly. The lease expiry date was in 2104. Considering the 78 years left we estimated the premium to the landlord for the lease extension to be within £13,300 and £15,400 plus professional charges.
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