Main reasons to start 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

The value of Chalk Farm leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate substantially once the unexpired lease term is less than 80 years

Chalk Farm property with a lease extension has roughly the same value as a freehold

It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the property will be worth the same as a freehold for many years ahead.

Lenders may decide not to finance a property with a short lease

Almost all banks and building societies require a lengthy amount of time left on any leasehold property before they will contemplate it as adequate security. Regardless of whether you need a mortgage, you should bear in mind that it is reasonable to assume that someone intending to purchase your property in the future might well do, so in the event that they can't get a mortgage, then the market price of your property could be adversely impacted. In the last decade many banks and building societies have increased the required minimum lease length that they are willing to lend on

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

Irrespective of whether you are a tenant or a freeholder in Chalk Farm,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Chalk Farm valuers.

Chalk Farm Lease Extension Example Cases:

Milo, Chalk Farm, North London,

Milo was the the leasehold owner of a conversion flat in Chalk Farm on the market with a lease of a few days over 61 years left. Milo informally approached his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £125 annually. No ground rent would be due on a lease extension were Milo to exercise his statutory right. Milo procured expert advice and was able to make an informed decision and handle with the matter and sell the property.

Chalk Farm case:

Dr Lewis Wood moved into a studio flat in Chalk Farm in January 2004. The question was if we could estimate the price would be for a ninety year extension to my lease. Identical premises in Chalk Farm with an extended lease were valued around £201,200. The mid-range amount of ground rent was £55 invoiced monthly. The lease came to a finish on 10 July 2082. Taking into account 56 years left we estimated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 plus professional charges.