Top reasons for Chelmsford lease extension

Main reasons to commence your Chelmsford lease extension today:

Increase your lease and increase your Chelmsford property value

The re-sale value of a leasehold property in Chelmsford is impacted by how long the lease has left to run. If it is close to or less than 80 years you should envisage problems on re-sale, so it is advisable to arrange for a lease extension ahead of buying. It is preferable to commence the process of extending the lease is when the lease still has 82 years remaining so that all matters can be finalised in advance of the eighty year threshold. Statute entitles Chelmsford qualifying lessees to an additional term of 90 years over and above the unexpired term, at a nominal rent (zero ground rent). The intention of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.

An extended lease has roughly the same value as a freehold

It is generally considered that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.

Banks and Building Societies may not loan monies on a short lease

The definition of a short lease depends on the specific mortgage company, yet banks and building societies start to get jittery at around 75 years. This may cause difficulties as and when you wish to market or remortgage your flat as it will be practically unmortgageable. You might have no imminent intention to sell but when you do your buyer must hold off for 2 years before being able to exercise the right to a a lease extension.

What makes us experts in Chelmsford lease extensions?

Retaining our service gives you better control over the value of your Chelmsford leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Chelmsford Lease Extension Example Cases:

Ashleigh, Chelmsford, Essex,

Off the back of protracted discussions with the landlord of her garden flat in Chelmsford, Ashleigh commenced the lease extension process as the 80 year deadline was quickly nearing. The lease extension completed in August 2005. The freeholder’s costs were kept to an absolute minimum.

Chelmsford case:

Dr L Sharif owned a ground floor flat in Chelmsford in November 1995. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Identical properties in Chelmsford with a long lease were in the region of £246,800. The average amount of ground rent was £60 billed annually. The lease finished in 2076. Taking into account 50 years unexpired we approximated the premium to the freeholder to extend the lease to be between £44,700 and £51,600 exclusive of fees.

Chelmsford case:

Last Autumn we were e-mailed by Mr and Mrs. T Patel , who was assigned a lease of a recently refurbished apartment in Chelmsford in August 2000. We are asked if we could estimate the price would be to extend the lease by a further 90 years. Identical properties in Chelmsford with 100 year plus lease were in the region of £203,200. The average amount of ground rent was £65 billed per annum. The lease elapsed in 2087. Given that there were 61 years remaining we approximated the compensation to the landlord for the lease extension to be within £20,000 and £23,000 exclusive of costs.