Why you should commence your Chatham lease extension

Top reasons for lease extension now:

A Chatham lease depreciates with the years remaining on the lease.

Chatham leases on domestic deteriorating in value. Where your lease has about 90 years left, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease falls below this level then you begin paying an additional element called marriage value. Flat owners in Chatham will usually qualify for a lease extension; however a solicitor should be able check your eligibility. In certain cases you may not be entitled. There are prescribed deadlines and formalities to follow once the process has started so it’s best to be guided by a lawyer during the process.

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

Leasehold premises in Chatham with over 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.

Lending institutions will not finance a property on a short lease

The propensity since 2008 has been for lenders to tighten lending requirements generally - this has extended to the property over which the mortgage is to be granted. This has meant the minimum number of years remaining under the lease required by banks has increased. In the past mortgage companies would lend on a lease with twenty years plus the term of the loan - typically 50 year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

Why use us for your lease extension in Chatham?

The conveyancers that we work with procure Chatham 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 lawyer we work with provide it.

Chatham Lease Extension Case Studies:

Jordan, Chatham, Kent,

Trailing protracted discussions with the freeholder of her first floor apartment in Chatham, Jordan initiated the lease extension process as the eighty year threshold was swiftly nearing. The transaction was finalised in July 2012. The landlord’s fees were kept to an absolute minimum.

Chatham case:

Dr Lewis Wilson bought a ground floor flat in Chatham in November 1996. The dilemma was if we could estimate the premium would be to extend the lease by 90 years. Similar properties in Chatham with 100 year plus lease were worth £255,000. The mid-range ground rent payable was £50 invoiced yearly. The lease ended on 17 April 2095. Taking into account 70 years outstanding we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including professional charges.

Chatham case:

Mrs Courtney Young acquired a purpose-built apartment in Chatham in January 2002. We are asked if we could shed any light on how much (roughly) price could be to prolong the lease by 90 years. Identical properties in Chatham with 100 year plus lease were in the region of £246,800. The mid-range amount of ground rent was £60 billed monthly. The lease ran out on 14 July 2075. Considering the 50 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £44,700 and £51,600 exclusive of legals.