Why you should commence your Chester lease extension

Main reasons to commence your Chester lease extension today:

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

Unfortunately that a Chester residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Chester property prices.Once your lease gets to 85ish years, you should start thinking about a lease extension. If the number of years remaining drops below eighty years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Chester will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor from beginning to end of the process.

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

Leasehold residencies in Chester with more than 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.

Banks and Building Societies may decide not to grant a mortgage with a short lease

The propensity since over the last decade has been for mortgage companies to tighten lending requirements generally - this has extended to the types of security over which the home loan is to be charged. This has resulted in the minimum number of years remaining under the lease required by banks has increased. In the past mortgage companies would lend on a lease with twenty years plus the term of the loan - routinely 50 year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many now have a minimum term of 75 years as standard.

What makes us experts in Chester lease extensions?

Irrespective of whether you are a tenant or a landlord in Chester,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Chester valuers.

Chester Lease Extension Case Studies:

Ellen, Chester, Cheshire,

Subsequent to protracted negotiations with the landlord of her garden flat in Chester, Ellen started the lease extension process just as the lease was coming close to the all-important eighty-year mark. The legal work was finalised in June 2009. The landlord’s fees were negotiated to slightly above 450 GBP.

Chester case:

In 2014 we were approached by Dr K López who, having owned a garden flat in Chester in July 1995. We are asked if we could shed any light on how much (roughly) premium would be to extend the lease by ninety years. Identical flats in Chester with an extended lease were valued around £218,400. The mid-range ground rent payable was £60 invoiced quarterly. The lease elapsed in 2085. Given that there were 59 years left we estimated the premium to the landlord to extend the lease to be within £27,600 and £31,800 exclusive of legals.

Chester case:

Dr P Sharif moved into a one bedroom flat in Chester in September 2008. We are asked if we could estimate the price would be to extend the lease by an additional years. Identical properties in Chester with a long lease were in the region of £205,000. The average amount of ground rent was £50 invoiced every twelve months. The lease finished in 2105. Considering the 79 years left we calculated the premium to the landlord to extend the lease to be between £7,600 and £8,800 exclusive of professional charges.