Main reasons to commence your Chesterton lease extension

Main reasons to start your Chesterton lease extension today:

Increase your lease and increase your Chesterton property value

The re-sale value of a leasehold property in Chesterton is impacted by how long the lease has left to run. If it is close to or fewer than eighty years you should anticipate difficulties on re-sale, so it is advisable to arrange for the lease to be extended prior to buying. It is preferable to commence the lease extension process when the lease still has 82 years unexpired so that all matters can be concluded well before the 80 year mark. Current legislation entitles Chesterton qualifying lessees to an additional term of 90 years over and above the existing term, at a nominal rent (zero ground rent). The purpose of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.

An extended lease is almost the same value as a freehold

It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.

Lending institutions may not loan monies with a short lease

The trend since 2008 has been for lenders to tighten lending criteria across the board - this has extended to the property over which the mortgage is to be granted. This has meant the unexpired lease term required by lenders has increased. In the past banks would lend on a lease with twenty years plus the term of the loan - typically fifty year leases but those requirements have been chipped away by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

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

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

Chesterton Lease Extension Example Cases:

Louise, Chesterton, Staffordshire,

Trailing lengthy discussions with the freeholder of her purpose-built apartment in Chesterton, Louise commenced the lease extension process as the 80 year mark was rapidly coming. The transaction was finalised in January 2011. The landlord’s charges were kept to an absolute minimum.

Chesterton case:

In 2012 we were phoned by Mr and Mrs. W Clarke who, having acquired a one bedroom flat in Chesterton in November 2011. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by ninety years. Identical residencies in Chesterton with 100 year plus lease were valued about £240,600. The average ground rent payable was £60 billed quarterly. The lease ended on 24 January 2088. Taking into account 62 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £21,900 and £25,200 not including fees.

Chesterton case:

Last October we were phoned by Mrs E Girard , who owned a basement apartment in Chesterton in February 1997. The dilemma was if we could estimate the price could be to prolong the lease by ninety years. Identical premises in Chesterton with an extended lease were worth £174,200. The mid-range amount of ground rent was £55 billed quarterly. The lease termination date was on 23 July 2077. Given that there were 51 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 plus expenses.