Why you should start your Chester lease extension

Main reasons to commence your Chester lease extension today:

Increase your lease and increase your Chester property value

Owning a flat usually means owning a lease of the property, which has a set term of years. The lease will ordinarily be granted for a set period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Chester. Clearly, the term of lease left shortens over time. This may slip by relatively unnoticed when the residence has to be sold or re-mortgaged. The shorter the lease the less it is worth and the more it will cost to extend the lease. Eligible leaseholders in Chester have the legal entitlement to extend the lease for a further ninety years in accordance with Leasehold Reform legislation. Do give careful attention before putting off your Chester lease extension. Putting off that expense now only increases the price you will eventually have to pay for a lease extension

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

Leasehold properties in Chester with in excess of 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.

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

Many banks and building societies insist on a lengthy amount of time remaining on a leasehold residence before they will contemplate it as adequate security. Even if you don't require a mortgage, you should be conscious that it is reasonable to assume that someone intending to purchase your property in the future might well do, so in the event that they can't secure a mortgage, then the market price of your property will likely suffer. In the last decade most mortgage lenders have increased the required minimum lease length that they are prepared to lend on

Why use us for your lease extension in Chester?

Using our service will provide you enhanced control over the value of your Chester leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Chester Lease Extension Example Cases:

Finn, Chester, Cheshire,

Finn owned a studio flat in Chester being marketed with a lease of fraction over 59 years left. Finn on an informal basis spoke with his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Finn to exercise his statutory right. Finn procured expert legal guidance and was able to make an informed decision and handle with the matter and ending up with a market value flat.

Chester case:

Mr and Mrs. P David completed a basement flat in Chester in March 2005. We are asked if we could estimate the premium would be to prolong the lease by 90 years. Identical flats in Chester with an extended lease were in the region of £200,000. The average ground rent payable was £50 invoiced annually. The lease expired in 2104. Considering the 78 years outstanding we estimated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 plus fees.

Chester case:

Ms Charlotte Thomas was assigned a lease of a basement flat in Chester in July 2010. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by ninety years. Similar premises in Chester with 100 year plus lease were worth £267,600. The average amount of ground rent was £65 collected yearly. The lease terminated in 2093. Given that there were 67 years left we estimated the compensation to the freeholder to extend the lease to be within £14,300 and £16,400 plus costs.