Top reasons for Chepstow lease extension

Top reasons for lease extension now:

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

Chepstow leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Most owners of residential leasehold property in Chepstow enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Chepstow you must see if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value

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

Leasehold properties in Chepstow with in excess of 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.

Lending institutions will not loan monies with a short lease

Lenders are making their criteria more stringent and many now require flats to have at least 60 if not 70 years remaining at the expiry of the mortgage. Given that a number of flats in Chepstow were created in the 1950s, 1960s and 1970s as a result many now require lease extensions if they wish to get a mortgage.

What makes us experts in Chepstow lease extensions?

Retaining our service gives you enhanced control over the value of your Chepstow leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Chepstow Lease Extension Case Studies:

Hugo, Chepstow, Monmouthshire,

Hugo was the the leasehold proprietor of a 2 bedroom flat in Chepstow being marketed with a lease of a little over 59 years left. Hugo on an informal basis spoke with his landlord being a well known London-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 yearly. Ordinarily, ground rent would not be payable on a lease extension were Hugo to exercise his statutory right. Hugo procured expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the flat.

Chepstow case:

Ms M Kelly bought a recently refurbished flat in Chepstow in November 2008. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by ninety years. Similar homes in Chepstow with a long lease were in the region of £246,800. The average ground rent payable was £60 billed monthly. The lease ended in 2076. Considering the 50 years left we approximated the premium to the freeholder for the lease extension to be between £44,700 and £51,600 exclusive of professional charges.

Chepstow case:

Last year we were called by Ms Leah Roux , who completed a studio apartment in Chepstow in July 2004. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year extension to my lease. Identical residencies in Chepstow with a long lease were valued about £208,200. The mid-range amount of ground rent was £65 billed every twelve months. The lease concluded in 2087. Considering the 61 years left we estimated the premium to the freeholder to extend the lease to be between £20,000 and £23,000 exclusive of legals.