Top reasons for Chathill lease extension

Top reasons for lease extension now:

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

The re-sale value of a leasehold property in Chathill is impacted by how many years the lease has left to run. If it is near to or less than eighty years you should envisage problems on re-sale, so it is recommended to arrange for the lease to be extended ahead of buying. It is preferable to start the lease extension process when the lease still has 82 years unexpired so that formalities can be concluded in advance of the 80 year cut off point. Statute entitles Chathill qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus a further term of 90 years. The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.

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

Leasehold properties in Chathill with more than 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.

Mortgage lenders will not finance a property on a short lease

Most mortgage companies will not grant a mortgage on a lease with less than seventy years unexpired - although this varies between mortgage companies. A purchaser will likely encounter difficulties in obtaining a mortgage and this will result in your Chathill property being difficult to sell or to obtain finance on.

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

Lease extensions in Chathill can be a difficult process. We recommend you procure guidance from a lawyer and surveyor 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 procuring Chathill lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Chathill Lease Extension Example Cases:

Leo, Chathill, Northumberland

Last Autumn Leo, started to get close to the eighty-year threshold with the lease on his first floor apartment in Chathill. Having purchased his flat 18 years previously, the length of the lease was of minimal interest. Thankfully, he noticed he would soon be paying way over the odds for a lease extension. Leo extended the lease just ahead of time last March. Leo and the freeholder subsequently settled on sum of £5,000 . If the lease had gone to less than 80 years, the amount would have escalated by at least £1,150.

Chathill case:

In 2009 we were phoned by Mr and Mrs. W García who, having bought a studio flat in Chathill in March 2000. We are asked if we could approximate the price could be to prolong the lease by 90 years. Comparative residencies in Chathill with an extended lease were worth £181,600. The mid-range amount of ground rent was £55 collected every twelve months. The lease end date was in 2078. Having 52 years left we approximated the premium to the landlord for the lease extension to be within £30,400 and £35,200 exclusive of fees.

Chathill case:

Dr P López bought a first floor flat in Chathill in March 2012. The question was if we could approximate the price would likely be to extend the lease by 90 years. Comparable flats in Chathill with an extended lease were worth £285,000. The average amount of ground rent was £45 billed yearly. The lease concluded on 28 March 2098. Having 72 years unexpired we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of costs.