Why you should start your Chester lease extension

Top reasons for lease extension now:

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

The only way is down when it comes to Chester lease terms. Chester properties that have a remaining term shorter than 80 years will de-escalate in value at a rapid rate, and the cost to extend your lease will rise.

An extended lease is almost the same value as a freehold

Leasehold premises in Chester with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.

Banks and Building Societies may not loan monies on a short lease

The definition of a short lease depends on the specific mortgage company, yet banks and building societies start to become concerned at around 75 years. This may cause difficulties once you need to market or refinance your property as it will be practically unmortgageable. Even though you may have no immediate plan to sell but when you do your purchaser will need to wait two years before being able to exercise the right to a a lease extension.

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

Lease extensions in Chester can be a difficult process. We recommend you get professional help from a conveyancing solicitor and valuer 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 Chester lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Chester Lease Extension Case Studies:

Bethany, Chester, Cheshire,

After lengthy negotiations with the landlord of her purpose-built flat in Chester, Bethany commenced the lease extension process as the eighty year mark was rapidly advancing. The lease extension was concluded in February 2009. The freeholder’s charges were restricted to below 700 GBP.

Chester case:

In 2012 we were approached by Mr T Lambert who, having took over the lease of a one bedroom apartment in Chester in July 1996. We are asked if we could estimate the premium would be to prolong the lease by an additional years. Similar flats in Chester with 100 year plus lease were worth £243,000. The mid-range ground rent payable was £65 billed monthly. The lease expired in 2089. Taking into account 63 years outstanding we calculated the premium to the landlord for the lease extension to be between £20,000 and £23,000 not including legals.

Chester case:

Last Autumn we were contacted by Mr and Mrs. O Lefebvre , who took over the lease of a one bedroom apartment in Chester in August 1995. The question was if we could approximate the compensation to the landlord would likely be to prolong the lease by ninety years. Similar properties in Chester with an extended lease were valued around £181,600. The mid-range ground rent payable was £55 billed annually. The lease ended in 2078. Having 52 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £30,400 and £35,200 exclusive of costs.