Why you should start your Chingford lease extension

Why you should commence your Chingford lease extension today:

A Chingford leasehold property depreciates with the years remaining on the lease.

Chingford leases on residential properties are gradually losing value. Where your lease has approximately ninety years remaining, you should start considering the need for a lease extension. An important point to note is that it is desirable for the lease extension to take place before the term of the existing lease drops lower than 80 years - otherwise a higher amount will be due. Leasehold owners in Chingford will usually qualify for a lease extension; however a solicitor should be able confirm your eligibility. In some situations you may not qualify. There are also strict timetables and steps to follow once the process is triggered so it’s prudent to be guided by a conveyancer during the process.

Chingford property with a lease extension is almost the same value as a freehold

Leasehold premises in Chingford with more than one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.

Lending institutions may decide not to loan monies on a short lease

Banks and Building Societies have set criteria when loaning monies secured on leasehold homes. Some will simply refuse lend at all once the residual lease term drops under a certain unexpired lease term. Many Mortgage lenders will not consider property with an unexpired term of less than 75 years as adequate security. In addition to this being important when selling, it is also relevant if you are seeking to refinance your Chingford property.

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

Engaging our service will provide you better control over the value of your Chingford leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Chingford Lease Extension Case Summaries:

Jade, Chingford, North East London,

Off the back of protracted negotiations with the landlord of her basement apartment in Chingford, Jade commenced the lease extension process just as her lease was approaching the crucial eighty-year mark. The transaction completed in November 2009. The landlord’s fees were negotiated to under 500 GBP.

Chingford case:

In 2014 we were called by Dr S Gray who, having took over the lease of a garden flat in Chingford in April 1999. The dilemma was if we could shed any light on how much (roughly) price would be to prolong the lease by an additional years. Identical homes in Chingford with 100 year plus lease were in the region of £242,600. The average ground rent payable was £45 billed quarterly. The lease expired in 2093. Given that there were 67 years remaining we approximated the premium to the landlord for the lease extension to be between £11,400 and £13,200 exclusive of legals.