Chingford Lease Extension - Free Consultation

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Why you should commence your Chingford lease extension

Why you should commence your Chingford lease extension today:

Increase your lease and increase your Chingford property value

The market value of a leasehold property in Chingford is impacted by how long the lease has remaining. If it is close to or less than eighty years you should foresee problems on re-sale, so it is recommended to arrange for the lease to be extended prior to purchasing. Ideally one should start the process of extending the lease is when a lease still has 82 years remaining so that all matters can be finalised well before the 80 year threshold. Leasehold Reform legislation entitles Chingford qualifying lessees to acquire a lease extension of ninety years on top of the remaining lease term at a peppercorn rent (that is, rent free). The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for decades to come.

Lenders will not loan monies on a short lease

Mortgage companies do not like short residential leases. You most probably experience problems where you wish to sell your flat in Chingford if the remaining term of your lease is less than the criteria set by most lenders. Different mortgage companies have different criteria but in the main they are looking for an unexpired term of at least seventy years.

Lender Requirement
Bank of Scotland Minimum 70 years from the date of the mortgage.
Chelsea Building Society 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower.
Coventry Building Society A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion.
HSBC All Residential leasehold properties must have more than 30 years remaining on the lease beyond the term of the mortgage at the outset.

All Buy to Let leasehold properties must have more than 35 years remaining on the lease beyond the term of the mortgage at the outset.
Virgin 85 years at the time of completion. If it's less, we require it to be extended on or before completion.

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

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

Chingford Lease Extension Case Studies:

Michael, Chingford, North East London,

Michael was the the leasehold proprietor of a 2 bedroom flat in Chingford being marketed with a lease of a little over 72 years left. Michael informally spoke with his landlord a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Michael to invoke his statutory right. Michael obtained expert advice and secured satisfactory deal informally and sell the flat.

Chingford case:

In 2012 we were e-mailed by Dr H Adams who, having purchased a basement flat in Chingford in January 2000. We are asked if we could estimate the premium would be to extend the lease by an additional years. Similar premises in Chingford with a long lease were valued about £193,400. The average ground rent payable was £65 invoiced quarterly. The lease ended on 9 November 2078. Having 59 years remaining we approximated the compensation to the freeholder for the lease extension to be within £21,900 and £25,200 not including legals.

Decision in Redbridge

An example of a Freehold Enfranchisement case for a Chingford property is 201 & 201a St. Barnabas Road in October 2013. The Tribunal decided that the price to be paid by the Applicants for the freehold interest is £20,071. This case affected 2 flats. The number of years remaining on the existing lease(s) was 69.26 years.