Why you should start your Chelsea lease extension

Why you should commence your Chelsea lease extension today:

A Chelsea leasehold property depreciates with the years remaining on the lease.

As the length of the unexpired term of a Chelsea residential lease lessens so does its value and therefore the value of your property. If the lease has, more than 100 years to run then this decrease may be fractional nevertheless there will become a point in time when a lease has under than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary reason why you should consider extending sooner than later. The majority of flat owners in Chelsea will meet the qualifying criteria; nevertheless a lawyer can advise whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.

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

It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.

Lending institutions may decide not to finance a property with a short lease

The propensity since 2008 has been for lenders to tighten lending requirements across the board - this has extended to the property over which the home loan is to be charged. This has resulted in the minimum number of years remaining under the lease required by banks has increased. Historically lenders would lend on a lease with 25 years plus the term of the loan - routinely fifty year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many now have a minimum term of 75 years as a prerequisite.

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

Lease extensions in Chelsea can be a difficult process. We recommend you get professional help from a lawyer and surveyor with experience in lease extensions.

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

Chelsea Lease Extension Example Cases:

Sebastian, Chelsea, West London,

Sebastian was the the leasehold proprietor of a conversion apartment in Chelsea on the market with a lease of a little over 72 years unexpired. Sebastian on an informal basis approached his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Sebastian to exercise his statutory right. Sebastian obtained expert advice and secured satisfactory resolution informally and ending up with a market value flat.

Chelsea case:

In 2012 we were approached by Ms M Lefebvre who, having took over the lease of a purpose-built flat in Chelsea in May 1996. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year lease extension. Comparable residencies in Chelsea with 100 year plus lease were worth £265,000. The mid-range amount of ground rent was £50 collected quarterly. The lease ran out on 4 June 2099. Taking into account 73 years left we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of expenses.