Top reasons for Chelsea lease extension

Why you should commence your Chelsea lease extension today:

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

The market value of Chelsea leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate significantly once the remaining term is less than eighty years

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

It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.

Lending institutions may not finance a property on a short lease

The definition of a short lease depends on the specific mortgage company, yet lending institutions start to become nervous at around 75 years. This will cause difficulties when you need to market or refinance your flat as it will be practically unmortgageable. You might not have an immediate plan to sell but when you do your buyer will have to wait a couple of years before being able to commence the legal procedures for a lease extension.

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

Retaining our service will provide you increased control over the value of your Chelsea leasehold, as your property will be more valuable and marketable in relation to the 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.

Chelsea Lease Extension Example Cases:

David, Chelsea, West London,

David owned a conversion apartment in Chelsea on the market with a lease of a few days over 72 years outstanding. David informally spoke with his landlord a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £200 annually. No ground rent would be due on a lease extension were David to invoke his statutory right. David obtained expert legal guidance and was able to make an informed decision and handle with the matter and readily saleable.

Chelsea case:

Last February we were contacted by Dr H Rivera , who acquired a basement flat in Chelsea in August 1999. We are asked if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Comparable flats in Chelsea with 100 year plus lease were in the region of £166,400. The mid-range amount of ground rent was £60 invoiced per annum. The lease ran out in 2080. Given that there were 54 years left we calculated the compensation to the freeholder to extend the lease to be within £32,300 and £37,400 not including professional charges.