Top reasons for Chatham lease extension

Main reasons to commence your Chatham lease extension today:

Increase your lease and increase your Chatham property value

The only way is down when it comes to Chatham lease terms. Chatham leaseholds that have a lease term less than than eighty years will reduce in value at a rapid rate, and the cost of extending your lease will increase.

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

Leasehold residencies in Chatham with over one hundred 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 property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.

Lenders may not grant a mortgage on a short lease

The propensity since the credit crunch has been for lenders to tighten lending requirements generally - this has extended to the property over which the home loan is to be charged. This has meant the minimum number of years remaining under the lease required by banks has increased. In the past mortgage companies were content with 25 years plus the term of the loan - typically 50 year leases but those requirements evolved by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

What makes us experts in Chatham lease extensions?

Retaining our service will provide you better control over the value of your Chatham leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Chatham Lease Extension Case Studies:

Finn, Chatham, Kent

Twenty four months ago Finn, started to get close to the 80-year mark with the lease on his first floor flat in Chatham. In buying his home 19 years ago, the lease term was of little significance. Thankfully, he realised he needed to take action soon on Extending the lease. Finn arranged for a lease extension at the eleventh hour last May. Finn and the freeholder in the end settled on the final figure of £5,000 . If he failed to meet the deadline, the sum would have become more costly by at least £975.

Chatham case:

In 2011 we were contacted by Mr and Mrs. U Kelly who, having completed a basement apartment in Chatham in July 2002. The dilemma was if we could estimate the premium could be for a ninety year lease extension. Identical premises in Chatham with an extended lease were worth £200,800. The mid-range amount of ground rent was £65 billed quarterly. The lease terminated on 25 June 2086. Having 60 years remaining we approximated the compensation to the landlord for the lease extension to be between £20,900 and £24,200 not including costs.

Chatham case:

Last Spring we were called by Dr Samuel Gunderson , who purchased a basement flat in Chatham in August 1996. The dilemma was if we could approximate the premium would likely be to prolong the lease by an additional years. Identical premises in Chatham with a long lease were worth £260,000. The mid-range ground rent payable was £50 collected yearly. The lease terminated in 2097. Taking into account 71 years left we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus professional charges.