Main reasons to commence your Chelsfield lease extension

Top reasons for lease extension now:

Increase your lease and increase your Chelsfield property value

It’s a harsh truth that a Chelsfield residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Chelsfield property prices.Once your lease gets to 85ish years, you should start thinking about a lease extension. If the number of years remaining drops under 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most leasehold owners in Chelsfield will be able to extend under the legislation; however a lawyer will be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer throughout the formalities.

Chelsfield property with a lease extension is almost the same value as a freehold

Leasehold properties in Chelsfield with over 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.

Lending institutions will not finance a property with a short lease

Banks and building societies are tightening their criteria and a meaningful number now expect flats to have a minimum of 60 if not 70 years left once the mortgage has expired. As many flats in Chelsfield were built in the 1950s, 1960s and 1970s as a result many now require lease extensions if they if they are to be mortgageable.

Why use us for your lease extension in Chelsfield?

Retaining our service will provide you better control over the value of your Chelsfield leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Chelsfield Lease Extension Case Summaries:

Cameron, Chelsfield, South East London

In recent months Cameron, came precariously close to the eighty-year mark with the lease on his studio apartment in Chelsfield. Having bought his flat two decades ago, the unexpired term was of no concern. Fortunately, it dawned on him that he would imminently be paying way over the odds for a lease extension. Cameron was able to extend his lease just under the wire in June. Cameron and the landlord ultimately settled on sum of £5,500 . If the lease had fallen to less than 80 years, the price would have gone up by at least £925.

Chelsfield case:

Last Winter we were approach by Ms Y Dupont , who owned a purpose-built flat in Chelsfield in May 1997. We are asked if we could shed any light on how much (roughly) premium would be to prolong the lease by an additional years. Comparable flats in Chelsfield with an extended lease were worth £250,400. The mid-range ground rent payable was £65 invoiced every twelve months. The lease elapsed in 2090. Given that there were 64 years remaining we approximated the compensation to the landlord for the lease extension to be within £19,000 and £22,000 exclusive of expenses.