Why you should commence your Chaddesley Corbett lease extension

Top reasons for lease extension now:

A Chaddesley Corbett lease depreciates with the years remaining on the lease.

When it comes to residential leasehold property in Chaddesley Corbett, you effectively rent it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive notably when there are less than eighty years left. Anyone in Chaddesley Corbett with a lease drawing near to 81 years unexpired should seriously consider extending it as soon as possible. When a lease has below 80 years left, under the current statute the freeholder is entitled to calculate and charge a larger amount, based on a technical calculation, known as “marriage value” which is due.

An extended lease is almost the same value as a freehold

Leasehold premises in Chaddesley Corbett with in excess of 100 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 buying the reversionary interest unless savings on ground rent and maintenance charges merit it.

Mortgage lenders may not lend on a short lease

The trend since over the last decade has been for banks to tighten lending criteria generally - this has extended to the property over which the mortgage is to be granted. This has resulted in the unexpired lease term required by lenders has increased. In the past lenders would grant a mortgage on a lease with twenty years plus the term of the loan - routinely 50 year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many use a minimum term of 75 years as a prerequisite.

What makes us experts in Chaddesley Corbett lease extensions?

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

Chaddesley Corbett Lease Extension Case Studies:

Sarah, Chaddesley Corbett, Worcestershire,

After unsuccessful negotiations with the freeholder of her two bedroom apartment in Chaddesley Corbett, Sarah commenced the lease extension process just as her lease was coming close to the critical 80-year mark. The transaction completed in June 2015. The landlord’s charges were kept to an absolute minimum.

Chaddesley Corbett case:

In 2009 we were e-mailed by Mrs Y Campbell who, having owned a garden flat in Chaddesley Corbett in March 2011. The dilemma was if we could approximate the premium could be for a 90 year lease extension. Similar residencies in Chaddesley Corbett with an extended lease were in the region of £208,600. The average amount of ground rent was £60 billed per annum. The lease termination date was on 12 February 2083. Taking into account 57 years left we calculated the premium to the landlord to extend the lease to be within £30,400 and £35,200 plus fees.

Chaddesley Corbett case:

In 2010 we were e-mailed by Mr and Mrs. O Anderson who, having completed a studio flat in Chaddesley Corbett in September 2012. The question was if we could shed any light on how much (approximately) price would be to extend the lease by a further 90 years. Comparative homes in Chaddesley Corbett with a long lease were valued around £200,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease expiry date was on 9 August 2103. Considering the 77 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of legals.