Why you should commence your Chellaston lease extension

Why you should start your Chellaston lease extension today:

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

Chellaston leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Chellaston tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Chellaston you should check if your lease has between 70 and ninety years remaining. There are compelling reasons why a Chellaston flat owner with a lease having around 80 years left should take action to ensure that a lease extension is put in place without delay

An extended lease is almost the same value as a freehold

Leasehold properties in Chellaston with over one hundred years remaining on the lease are often 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 buying the freehold unless savings on ground rent and maintenance charges merit it.

Lending institutions will not grant a mortgage with a short lease

The definition of a short lease varies by mortgage company, yet lending institutions start to become jittery at around 75 years. This may be problematic when you come to dispose of or remortgage your flat as it will be effectively unmortgageable. You might not have an imminent plan to sell but when you do your buyer will need to wait 2 years before they can exercise the right to a an extension to the lease.

Why use us for your lease extension in Chellaston?

Using our service will provide you increased control over the value of your Chellaston leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Chellaston Lease Extension Example Cases:

Megan, Chellaston, Derbyshire,

After unsuccessful correspondence with the freeholder of her ground floor flat in Chellaston, Megan commenced the lease extension process just as the lease was nearing the crucial 80-year deadline. The lease extension completed in July 2013. The freeholder’s costs were negotiated to a tad over 700 pounds.

Chellaston case:

Last month we were approach by Ms L White , who completed a garden flat in Chellaston in September 2004. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparative residencies in Chellaston with 100 year plus lease were valued around £264,000. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease terminated in 2079. Taking into account 53 years unexpired we calculated the compensation to the landlord for the lease extension to be within £37,100 and £42,800 not including professional charges.

Chellaston case:

Mr Dexter Howard owned a recently refurbished flat in Chellaston in September 2006. We are asked if we could approximate the price could be for a 90 year extension to my lease. Identical premises in Chellaston with 100 year plus lease were worth £225,400. The mid-range amount of ground rent was £45 invoiced yearly. The lease terminated on 26 March 2090. Having 64 years as a residual term we calculated the premium to the landlord to extend the lease to be between £15,200 and £17,600 not including legals.