Main reasons to start your Charterhouse lease extension

Top reasons for lease extension now:

A Charterhouse leasehold property depreciates with the years remaining on the lease.

Charterhouse leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. It is the case that most Charterhouse tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Charterhouse you should see if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the cost of any lease extension sharply increases as part of the premium you pay is what is known as a marriage value

An extended lease is almost the same value as a freehold

Leasehold properties in Charterhouse with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.

Banks and Building Societies may decide not to finance a property on a short lease

The trend since the credit crunch has been for mortgage companies to tighten lending requirements generally - this has extended to the types of security over which the mortgage is to be granted. This has meant the unexpired lease term required by lenders has increased. Historically banks would lend on a lease with 25 years plus the term of the loan - routinely fifty year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many now have a minimum term of 75 years as standard.

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

Engaging our service gives you enhanced control over the value of your Charterhouse leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Charterhouse Lease Extension Example Cases:

Archie, Charterhouse, London

Half a year ago Archie, started to get close to the 80-year threshold with the lease on his purpose- built apartment in Charterhouse. In buying his home 18 years ago, the unexpired term was of no importance. Fortunately, it dawned on him that he would imminently be paying an escalated premium for Extending the lease. Archie was able to extend his lease just in the nick of time last September. Archie and the freeholder via the management company eventually agreed on sum of £5,500 . If the lease had descended lower than eighty years, the price would have escalated by a minimum £1,000.

Charterhouse case:

In 2009 we were phoned by Mr and Mrs. W Dupont who, having took over the lease of a recently refurbished flat in Charterhouse in March 2007. We are asked if we could approximate the price would be for a 90 year extension to my lease. Similar homes in Charterhouse with an extended lease were worth £233,200. The mid-range amount of ground rent was £60 billed annually. The lease terminated on 25 February 2087. Having 61 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £22,800 and £26,400 exclusive of costs.