Main reasons to commence your Chingford lease extension

Why you should commence your Chingford lease extension today:

Increase your lease and increase your Chingford property value

The closer a domestic lease in Chingford gets to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, in excess of 99 years to run then this decrease may be fractional however there will become a point in time when a lease has under than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should consider extending without delay. The majority of flat owners in Chingford will meet the qualifying criteria; that being said a conveyancing solicitor will be able to confirm whether you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.

An extended lease has roughly the same value as a freehold

It is generally considered that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.

Banks and Building Societies will not grant a mortgage with a short lease

The trend since the credit crunch has been for lenders to tighten lending criteria generally - this has extended to the types of security over which the mortgage is to be granted. This has meant the minimum number of years remaining under the lease required by lenders has increased. In the past mortgage companies 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.

What makes us experts in Chingford lease extensions?

The lawyers that we work with handle Chingford 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.

Chingford Lease Extension Example Cases:

Ryan, Chingford, North East London

In recent months Ryan, started to get close to the eighty-year mark with the lease on his basement flat in Chingford. In buying his property 18 years previously, the length of the lease was of no relevance. by good luck, he became aware that he needed to take steps soon on a lease extension. Ryan was able to extend his lease just under the wire last June. Ryan and the landlord who owned the flat above eventually settled on sum of £5,000 . If he not met the deadline, the price would have escalated by at least £1,075.

Chingford case:

In 2014 we were approached by Mr I Patel who, having bought a basement apartment in Chingford in May 2005. The question was if we could estimate the price would be to prolong the lease by ninety years. Identical homes in Chingford with 100 year plus lease were worth £270,000. The average ground rent payable was £55 billed every twelve months. The lease ended in 2101. Given that there were 75 years remaining we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including expenses.