Top reasons for Chigwell lease extension

Main reasons to start your Chigwell lease extension today:

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

Chigwell leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most Chigwell tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Chigwell you must check if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension sharply increases as part of the premium you pay is what is known as a marriage value

An extended lease has roughly the same value as a freehold

Leasehold properties in Chigwell with in excess of 100 years remaining on the lease are sometimes 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 to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.

Mortgage lenders will not grant a mortgage with a short lease

Most high street banks are tightening their criteria and a meaningful number now want flats to have a minimum of sixty if not seventy years remaining at the expiry of the mortgage. Given that plenty of flats in Chigwell were built in the fifties, sixties and seventies as a result many now require lease extensions if they wish to get a mortgage.

Why use us for your lease extension in Chigwell?

The lawyers that we work with procure Chigwell lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.

Chigwell Lease Extension Case Summaries:

Tia, Chigwell, Essex,

In the wake of eight months of protracted correspondence with the landlord of her two bedroom flat in Chigwell, Tia started the lease extension process as the eighty year deadline was quickly nearing. The lease extension was concluded in March 2007. The freeholder’s charges were restricted to under six hundred pounds.

Chigwell case:

Last April we were contacted by Dr Felix Collins , who acquired a purpose-built flat in Chigwell in June 2001. The dilemma was if we could approximate the price could be for a 90 year extension to my lease. Identical residencies in Chigwell with 100 year plus lease were valued around £275,000. The average amount of ground rent was £55 collected per annum. The lease concluded on 15 February 2102. Considering the 76 years left we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus fees.