Why you should start your Chesham Bois lease extension

Top reasons for lease extension now:

Increase your lease and increase your Chesham Bois property value

The market value of Chesham Bois leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate significantly once the remaining term is less than 80 years

An extended lease is almost the same value as a freehold

Leasehold properties in Chesham Bois with more than 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.

Lenders may not finance a property on a short lease

The trend since 2008 has been for banks to tighten lending requirements across the board - this has extended to the types of security over which the mortgage is to be granted. This has meant the minimum number of years remaining under the lease required by mortgage companies has increased. In the past banks would grant a mortgage on a lease with 25 years plus the term of the loan - routinely 50 year leases but those requirements have been chipped away by the requirement for longer and longer leases - many use a minimum term of 75 years as standard.

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

The lawyers that we work with undertake Chesham Bois 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 conveyancing solicitor we work with provide it.

Chesham Bois Lease Extension Case Studies:

Ali, Chesham Bois, Buckinghamshire

Half a year ago Ali, started to get close to the 80-year mark with the lease on his two bedroom apartment in Chesham Bois. In buying his flat two decades ago, the length of the lease was of no relevance. Fortunately, it dawned on him that he would imminently be paying way over the odds for Extending the lease. Ali extended the lease just under the wire in July. Ali and the freeholder in the end agreed on sum of £5,000 . If he failed to meet the deadline, the amount would have escalated by at least £1,075.

Chesham Bois case:

Last Winter we were approach by Mr and Mrs. A Díaz , who bought a first floor flat in Chesham Bois in August 2007. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparative premises in Chesham Bois with 100 year plus lease were valued about £250,000. The mid-range amount of ground rent was £50 billed monthly. The lease lapsed on 12 May 2094. Taking into account 69 years remaining we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus expenses.

Chesham Bois case:

In 2009 we were approached by Mr and Mrs. O Rivera who, having completed a one bedroom flat in Chesham Bois in July 2011. The question was if we could shed any light on how much (approximately) price would be to extend the lease by 90 years. Identical flats in Chesham Bois with an extended lease were in the region of £285,000. The mid-range ground rent payable was £55 billed per annum. The lease ran out in 2105. Having 80 years outstanding we calculated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of professional charges.