Top reasons for Chelsea lease extension

Top reasons for lease extension now:

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

Chelsea leases on residential properties are gradually losing 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. Most owners of residential leasehold property in Chelsea enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Chelsea you would be well advised to see if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value

An extended lease is almost the same value as a freehold

It is generally accepted that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.

Lenders may decide not to lend on a short lease

Most mortgage companies will be unwilling to grant a mortgage on a lease with under seventy years unexpired - although this varies from lender to lender. A purchaser will likely encounter difficulties to obtain a mortgage and this could result in your Chelsea property being difficult to sell or remortgage.

Why use us for your lease extension in Chelsea?

The conveyancing solicitors that we work with undertake Chelsea lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.

Chelsea Lease Extension Case Studies:

Joseph, Chelsea, West London

Last Spring Joseph, started to get close to the eighty-year threshold with the lease on his ground floor flat in Chelsea. In buying his property two decades ago, the lease term was of no concern. As luck would have it, he realised he would imminently be paying an escalated premium for a lease extension. Joseph extended the lease just ahead of time in April. Joseph and the landlord who owned the flat above in the end settled on an amount of £5,500 . If he not met the deadline, the amount would have increased by a minimum £975.

Chelsea case:

Mrs Jodie López was assigned a lease of a first floor flat in Chelsea in July 2000. The dilemma was if we could approximate the compensation to the landlord would be to prolong the lease by an additional years. Similar residencies in Chelsea with an extended lease were valued around £246,800. The average amount of ground rent was £60 billed yearly. The lease terminated on 27 May 2076. Having 50 years unexpired we approximated the premium to the landlord to extend the lease to be between £44,700 and £51,600 exclusive of expenses.