Why you should commence your Chelsea lease extension
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Why you should start your Chelsea lease extension today: </h3>
<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/chelsea">Chelsea</a> lease depreciates with the years remaining on the lease.
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Chelsea leases on residential properties are gradually losing value. if your lease has about 90 years left, you should start considering the need for a lease extension. An important point to note is that it is desirable for a lease extension to take place before the term of the existing lease falls below eighty years - otherwise a higher premium will be payable. Leasehold owners in Chelsea will usually be legally entitled to a lease extension; however It would be wise to check with a lawyer to confirm your eligibility. In some situations you may not be entitled. There are prescribed timetables and steps to comply with once the process is initiated so it’s wise to be guided by a conveyancer during the process.
<h4>Chelsea property with a lease extension has roughly the same value as a freehold</h4>
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Leasehold premises in Chelsea with more than one hundred years unexpired 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 purchasing the freehold unless savings on ground rent and estate charges merit it. <h4>Lenders may decide not to finance a property on a short lease</h4>
Most banks have constrained their lending criteria in recent years and borrowers are encountering difficulties in arranging finance or re-mortgage against flats with shorter lease terms, particularly below seventy years as they are regarded as inadequate security.
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<th> Requirement
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<td>Birmingham Midshires</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>Coventry Building Society</td>
<td> A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion.
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<td>National Westminster Bank</td>
<td> Mortgage term plus 30 years.<br /><br />For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage.
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<td>Santander</td>
<td> You must report the unexpired lease term to us and await our instructions if: <br />1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or<br />2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or<br />3. no valuation report is provided<br />However, we will not accept a lease where on expiry of the mortgage:<br />(i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or<br />(ii) less than 30 years remain and the loan is repaid on a capital and interest basis<br /><br />We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder.
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<td>Skipton Building Society</td>
<td> 85 years from the date of completion of the mortgage<br /><br />For Buy to Let cases:<br />- lettings must not breach any of the lessee’s covenants; and<br />- consent of the lessor to lettings must be obtained if necessary
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What makes us experts in Chelsea lease extensions?
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<p> Using our service gives you increased control over the value of your Chelsea leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell.
The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions. <h4>
Chelsea Lease Extension Case Studies:
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<h5> Chantelle, Chelsea, West London,</h5>
<p> In the wake of eight months of protracted discussions with the freeholder of her one bedroom flat in Chelsea, Chantelle started the lease extension process just as her lease was approaching the crucial 80-year deadline. The lease extension was finalised in August 2006. The freeholder’s costs were restricted to slightly above four hundred GBP.
<h5>Chelsea case:</h5>
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Last Autumn we were e-mailed by Mr and Mrs. P Mitchell , who
purchased a garden flat in Chelsea in October 2002. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Identical properties in Chelsea with 100 year plus lease were worth £255,000. The average ground rent payable was £50 collected monthly. The lease concluded in 2097. Considering the 71 years left we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus expenses.
<div> <h5>Decision in Wandsworth</h5>
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An example of a Lease Extension case for a Chelsea residence is
150A Albert Palace Mansions Lurline Gardens in July 2013. The Tribunal determined that the premium payable for the new lease of the subject property was £42,069
This case was in relation to 1 flat. The remaining number of years on the lease was 57.06 years.
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