Main reasons to start your Chatham lease extension

Main reasons to start your Chatham lease extension today:

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

The value of Chatham 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 increase significantly once the unexpired lease term is less than 80 years

Chatham property with a lease extension is almost the same value as a freehold

It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.

Lending institutions will not issue a mortgage on a short lease

Whether or not the lease is be regarded as a short lease varies by mortgage company, yet lending institutions start to become jittery at around 75 years. This will cause difficulties when you wish to dispose of or refinance your property as it will be practically unmortgageable. You may have no imminent plan to sell but when you do your buyer must hold off for a couple of years before being able to commence the legal procedures for a lease extension.

What makes us experts in Chatham lease extensions?

Lease extensions in Chatham can be a difficult process. We recommend you procure guidance from a lawyer and valuer well versed in the legislation and lease extension process.

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

Chatham Lease Extension Case Summaries:

Tommy, Chatham, Kent

Last year Tommy, came perilously close to the 80-year mark with the lease on his purpose- built apartment in Chatham. In buying his home 18 years previously, the length of the lease was of little relevance. Fortunately, it dawned on him that he needed to take steps soon on a lease extension. Tommy extended the lease just ahead of time last June. Tommy and the freeholder via the management company subsequently agreed on the final figure of £6,000 . If he had missed the deadline, the sum would have escalated by a minimum £850.

Chatham case:

In 2009 we were approached by Dr W Khan who, having bought a first floor apartment in Chatham in June 2004. The question was if we could shed any light on how much (roughly) premium could be to extend the lease by a further 90 years. Similar homes in Chatham with a long lease were valued about £260,000. The average ground rent payable was £50 collected annually. The lease came to a finish in 2098. Taking into account 72 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of costs.

Chatham case:

Mr and Mrs. M Roberts took over the lease of a ground floor apartment in Chatham in April 2012. We are asked if we could approximate the premium could be for a ninety year extension to my lease. Comparable flats in Chatham with an extended lease were valued around £261,600. The average ground rent payable was £60 invoiced monthly. The lease termination date was in 2078. Given that there were 52 years remaining we calculated the compensation to the landlord to extend the lease to be between £39,000 and £45,000 plus legals.