Main reasons to start your Charterhouse lease extension

Why you should commence your Charterhouse lease extension today:

Increase your lease and increase your Charterhouse property value

There is no doubt about it a leasehold property in Charterhouse is a wasting asset as a result of the shortening lease. Where the residual term has, over 99 years to run then this decrease may be negligible however there will become a stage when a lease has less than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should consider extending without delay. Most flat owners in Charterhouse will meet the qualifying criteria; nevertheless a conveyancer should be able to confirm whether you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.

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

Leasehold residencies in Charterhouse with more than one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value 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 estate charges justify it.

Mortgage lenders will not grant a mortgage on a short lease

Whether or not the lease is be regarded as a short lease depends on the specific mortgage company, yet mortgage lenders start to become concerned at around 75 years. This may cause difficulties when you wish to market or remortgage your property as it will be effectively unmortgageable. Even though you might have no imminent intention to sell but when you do your buyer must hold off for a couple of years before being able to initiate the legal procedures for an extension to the lease.

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

The conveyancers that we work with undertake Charterhouse lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.

Charterhouse Lease Extension Case Summaries:

Jason, Charterhouse, London,

Jason owned a studio apartment in Charterhouse on the market with a lease of just over sixty years unexpired. Jason informally spoke with his freeholder a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jason to invoke his statutory right. Jason procured expert advice and secured an acceptable deal informally and readily saleable.

Charterhouse case:

In 2012 we were phoned by Ms Y Sánchez who, having acquired a basement flat in Charterhouse in April 2004. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparable properties in Charterhouse with an extended lease were valued about £208,600. The average ground rent payable was £60 billed monthly. The lease expired in 2083. Having 57 years unexpired we estimated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 not including legals.