Why you should commence your Chalk Farm lease extension

Main reasons to commence your Chalk Farm lease extension today:

Increase your lease and increase your Chalk Farm property value

When it comes to domestic leasehold premises in Chalk Farm, you are in fact renting it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are fewer than eighty years remaining. Anyone in Chalk Farm with a lease nearing 81 years remaining should seriously think of extending it without delay. Once the lease term has under 80 years outstanding, under the current legislation the freeholder is entitled to calculate and charge a greater 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 Chalk Farm with more than one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.

Lenders will not lend with a short lease

Most mortgage lenders have narrowed their lending criteria in recent years and borrowers are finding it increasingly difficult to raise finance or re-mortgage against flats with shorter lease terms, particularly below seventy years as they are regarded as deficient for lending purposes.

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

Using our service gives you enhanced control over the value of your Chalk Farm leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Chalk Farm Lease Extension Example Cases:

Teddy, Chalk Farm, North London

Half a year ago Teddy, started to get near to the eighty-year mark with the lease on his basement flat in Chalk Farm. Having bought his flat 19 years previously, the length of the lease was of minimal relevance. Fortunately, he realised he needed to take steps soon on Extending the lease. Teddy arranged for a lease extension just ahead of time in June. Teddy and the freeholder via the managing agents ultimately settled on the final figure of £6,000 . If he had missed the deadline, the amount would have escalated by at least £975.

Chalk Farm case:

Last Christmas we were called by Mr and Mrs. I Bailey , who was assigned a lease of a ground floor apartment in Chalk Farm in May 1996. We are asked if we could estimate the premium would likely be for a ninety year extension to my lease. Similar flats in Chalk Farm with an extended lease were valued about £267,600. The mid-range ground rent payable was £65 billed quarterly. The lease ended on 27 October 2093. Taking into account 67 years left we approximated the premium to the freeholder for the lease extension to be within £14,300 and £16,400 plus legals.