Why you should start your Cheshunt lease extension

Top reasons for lease extension now:

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

The closer a residential lease in Cheshunt gets to zero years unexpired, the more it reduces the value of the property. If the residual term has, beyond 100 years remaining then this decrease may be negligible however there will become a point in time when a lease has less than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should consider extending without delay. Most flat owners in Cheshunt will meet the qualifying criteria; nevertheless a lawyer should be able to confirm if you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.

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

It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further 90 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 lend on a short lease

Almost all mortgage lenders will not grant a mortgage on a lease with under seventy years unexpired - although this varies from lender to lender. A purchaser will likely encounter difficulties in obtaining a mortgage and this will result in your Cheshunt property becoming difficult to dispose of or remortgage.

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

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

Cheshunt Lease Extension Case Summaries:

Oliver, Cheshunt, Hertfordshire,

Oliver was the the leasehold proprietor of a 2 bedroom flat in Cheshunt being marketed with a lease of a few days over 61 years remaining. Oliver on an informal basis spoke with his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Oliver to exercise his statutory right. Oliver procured expert advice and was able to make an informed judgement and handle with the matter and sell the property.

Cheshunt case:

Dr R Gunderson moved into a purpose-built flat in Cheshunt in April 2012. The question was if we could estimate the premium would likely be for a 90 year lease extension. Identical premises in Cheshunt with an extended lease were in the region of £205,000. The mid-range amount of ground rent was £50 billed yearly. The lease expired on 4 September 2104. Considering the 78 years unexpired we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 plus expenses.

Cheshunt case:

Last Autumn we were called by Mr N Roberts , who bought a one bedroom flat in Cheshunt in February 2000. The question was if we could estimate the price could be to prolong the lease by a further 90 years. Similar premises in Cheshunt with 100 year plus lease were valued about £267,600. The average ground rent payable was £65 collected monthly. The lease lapsed in 2093. Taking into account 67 years as a residual term we estimated the premium to the landlord to extend the lease to be between £14,300 and £16,400 exclusive of professional charges.