Why you should start your Chelsea lease extension

Why you should commence your Chelsea lease extension today:

Increase your lease and increase your Chelsea property value

The market value of a leasehold property in Chelsea is impacted by how many years the lease has remaining. If it is near to or less than 80 years you should expect problems on re-sale, so it is recommended to arrange for the lease to be extended before purchasing. It is ideal to start the process of extending the lease is when a lease still has 82 years remaining so that all matters can be addressed well before the eighty year mark. Current legislation enables Chelsea qualifying lessees to a ninety year extension added to their remaining lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.

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

It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.

Lending institutions may not finance a property on a short lease

Mortgage lenders have set criteria when loaning funds charged on leasehold homes. Many will simply refrain from lending at all once the remaining lease term falls below a specified unexpired lease term. Many Banks and Building Societies will not regard property with a remaining below 75 years as adequate security. As well as impacting your ability to sell, it is also relevant where you are intending to refinance your Chelsea property.

Why use us for your lease extension in Chelsea?

Engaging our service will provide you better 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 wish to sell. The conveyancers 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:

Ella, Chelsea, West London,

After protracted discussions with the landlord of her leasehold flat in Chelsea, Ella initiated the lease extension process as the 80 year deadline was quickly advancing. The legal work completed in October 2006. The landlord’s fees were negotiated to slightly above 650 pounds.

Chelsea case:

Mr and Mrs. J Martínez owned a ground floor apartment in Chelsea in February 2007. The dilemma was if we could shed any light on how much (approximately) premium could be for a ninety year extension to my lease. Comparable residencies in Chelsea with 100 year plus lease were valued around £275,000. The mid-range amount of ground rent was £55 invoiced per annum. The lease lapsed on 22 November 2103. Taking into account 77 years outstanding we estimated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 plus costs.