Why you should start your Chesham lease extension

Top reasons for lease extension now:

A Chesham leasehold property depreciates with the years remaining on the lease.

Chesham leases on residential properties are gradually losing value. if your lease has about ninety years unexpired, you should start thinking about a lease extension. If lease term falls under eighty years, you will then have to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Chesham will mostly qualify for a lease extension; however It would be wise to check with a lawyer to check if you qualify. In some cases you may not be entitled. There are prescribed deadlines and procedures to follow once the process has started so it’s best to be guided by a conveyancing solicitor during the process.

An extended lease is almost the same value as a freehold

It is generally considered that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.

Banks and Building Societies may not lend with a short lease

The trend since over the last decade has been for mortgage companies to tighten lending requirements generally - this has extended to the property over which the mortgage is to be charged. This has resulted in the unexpired lease term required by banks has increased. Historically banks were content with 25 years plus the term of the loan - typically 50 year leases but those requirements have been chipped away by the requirement for lengthy leases - many use a minimum term of 75 years as standard.

What makes us experts in Chesham lease extensions?

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

Chesham Lease Extension Example Cases:

Luke, Chesham, Buckinghamshire

In recent months Luke, started to get near to the 80-year mark with the lease on his ground floor apartment in Chesham. Having bought his property 18 years previously, the length of the lease was of no interest. by good luck, he realised he would soon be paying way over the odds for Extending the lease. Luke arranged for a lease extension just under the wire last September. Luke and the freeholder eventually settled on sum of £5,500 . If he had missed the deadline, the premium would have escalated by at least £1,025.

Chesham case:

In 2010 we were e-mailed by Ms Lauren Roberts who, having bought a ground floor apartment in Chesham in August 1998. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Comparative residencies in Chesham with a long lease were worth £260,000. The average ground rent payable was £50 collected quarterly. The lease terminated on 26 February 2097. Taking into account 71 years left we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of fees.

Chesham case:

Last Winter we were e-mailed by Mr and Mrs. I Nguyen , who was assigned a lease of a one bedroom apartment in Chesham in September 1999. The dilemma was if we could approximate the premium would be for a ninety year extension to my lease. Identical residencies in Chesham with a long lease were in the region of £254,200. The mid-range amount of ground rent was £60 billed quarterly. The lease terminated on 15 January 2077. Having 51 years remaining we approximated the premium to the freeholder for the lease extension to be between £43,700 and £50,600 exclusive of legals.