Why you should start your Chesham lease extension

Top reasons for lease extension now:

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

There is no doubt about it a leasehold property in Chesham is a wasting asset as a result of the shortening lease. Where the lease has, beyond 125 years remaining then this decrease may be negligible however there will become a stage when a lease has less than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should extend the lease without delay. Many flat owners in Chesham will meet the qualifying criteria; nevertheless a conveyancing solicitor can advise if you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.

Chesham property with a lease extension is almost the same value as a freehold

Leasehold properties in Chesham with more than one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth 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 service charges warrant it.

Mortgage lenders may decide not to lend with a short lease

The propensity since 2008 has been for banks to tighten lending requirements generally - this has extended to the property over which the home loan 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 lenders would lend on a lease with 25 years plus the term of the loan - routinely fifty year leases but those requirements have been chipped away by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

Why use us for your lease extension in Chesham?

Lease extensions in Chesham can be a difficult process. We recommend you obtain guidance from a lawyer and surveyor well versed in the legislation and lease extension process.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Chesham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Chesham Lease Extension Case Summaries:

Nathan, Chesham, Buckinghamshire,

Nathan owned a high value flat in Chesham on the market with a lease of a little over fifty eight years outstanding. Nathan informally approached his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Nathan to invoke his statutory right. Nathan procured expert legal guidance and secured satisfactory deal informally and ending up with a market value flat.

Chesham case:

Last Winter we were contacted by Mr R Dupont , who owned a first floor flat in Chesham in November 2001. The dilemma was if we could estimate the premium would be to extend the lease by ninety years. Comparative properties in Chesham with an extended lease were in the region of £270,000. The mid-range amount of ground rent was £55 billed every twelve months. The lease came to a finish in 2101. Taking into account 75 years unexpired we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of expenses.

Chesham case:

In 2010 we were phoned by Ms Jordan Petit who, having completed a ground floor apartment in Chesham in January 2005. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Comparative residencies in Chesham with an extended lease were in the region of £173,800. The average ground rent payable was £60 collected annually. The lease elapsed on 2 May 2081. Taking into account 55 years unexpired we approximated the premium to the landlord for the lease extension to be within £31,400 and £36,200 exclusive of professional charges.