Top reasons for Chesham lease extension

Why you should start your Chesham lease extension today:

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

The market value of Chesham 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 materialy once the remaining term is below than 80 years

An extended lease has roughly the same value as a freehold

Leasehold premises in Chesham with more than one hundred years outstanding on the lease are often referred to as ‘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 to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.

Lenders may not grant a mortgage on a short lease

Almost all mortgage companies require a lengthy amount of time left on a leasehold property before they will consider it as adequate security. Regardless of whether you require a mortgage, you should bear in mind that it is reasonable to assume that someone intending to acquire your property in the future might well do, so if they are not able to secure a mortgage, then the value of your property will likely be adversely impacted. Since 2008 many banks and building societies have increased the required minimum lease length that they are prepared to lend on

What makes us experts in Chesham lease extensions?

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

Chesham Lease Extension Case Studies:

Kai, Chesham, Buckinghamshire

Last year Kai, started to get near to the 80-year mark with the lease on his leasehold apartment in Chesham. Having bought his flat two decades ago, the length of the lease was of minimal relevance. by good luck, he recognised he would soon be paying way over the odds for a lease extension. Kai was able to extend his lease at the eleventh hour last April. Kai and the freeholder via the managing agents ultimately agreed on sum of £5,500 . If the lease had dipped lower than eighty years, the sum would have gone up by at least £975.

Chesham case:

Mr and Mrs. M Ali purchased a basement flat in Chesham in November 2005. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Comparable homes in Chesham with a long lease were in the region of £173,800. The average amount of ground rent was £60 invoiced yearly. The lease terminated on 7 April 2081. Taking into account 55 years remaining we estimated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 plus expenses.

Chesham case:

In 2009 we were e-mailed by Mr and Mrs. W Torres who, having purchased a one bedroom flat in Chesham in August 1996. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by 90 years. Comparable residencies in Chesham with a long lease were valued about £235,200. The mid-range ground rent payable was £45 billed monthly. The lease elapsed in 2092. Taking into account 66 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 not including fees.