Main reasons to commence your Chalk Farm lease extension

Why you should commence your Chalk Farm lease extension today:

Increase your lease and increase your Chalk Farm property value

Chalk Farm leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Chalk Farm tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Chalk Farm you must see if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as part of the premium you pay is what is known as a marriage value

An extended lease has roughly the same value as a freehold

Leasehold residencies in Chalk Farm with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value 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 estate charges justify it.

Mortgage lenders may not grant a mortgage with a short lease

Whether or not the lease is be regarded as a short lease varies by mortgage company, yet mortgage lenders start to become concerned at around 75 years. This may cause difficulties once you wish to market or remortgage your property as it will be practically unmortgageable. You may not have an immediate plan to sell but when you do your purchaser will need to hold off for a couple of years before being able to commence the legal procedures for a lease extension.

Why use us for your lease extension in Chalk Farm?

Lease extensions in Chalk Farm can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and valuer with experience in this area.

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 Chalk Farm lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Chalk Farm Lease Extension Example Cases:

Molly, Chalk Farm, North London,

Off the back of unsuccessful correspondence with the landlord of her ground floor flat in Chalk Farm, Molly commenced the lease extension process just as her lease was nearing the critical 80-year threshold. The transaction was concluded in March 2006. The landlord’s costs were restricted to below 450 pounds.

Chalk Farm case:

In 2014 we were approached by Mrs M Bernard who, having completed a studio flat in Chalk Farm in May 2009. We are asked if we could approximate the premium would likely be to extend the lease by an additional years. Identical flats in Chalk Farm with an extended lease were worth £295,000. The average amount of ground rent was £45 billed every twelve months. The lease end date was in 2101. Taking into account 75 years outstanding we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including legals.